GIFT City To Enter Oil Field Equipment Leasing Biz

According to a study, India's oil and gas exploration area is expected to expand from 0.5 million sq km to 1 million sq km by 2030, making this a step towards ‘Self-Reliant India’

GIFT City To Enter Oil Field Equipment Leasing Biz

Gandhinagar’s Gujarat International Finance Tec-City (GIFT City) is set to introduce a new facet to India’s financial landscape, bolstering self-sufficiency in the oil and gas sector. Following its success in aircraft and ship leasing, GIFT City is now venturing into oil field equipment leasing, further expanding its portfolio.

The International Financial Services Centres Authority (IFSCA) has proposed recognising oil field equipment leasing as a financial product, enabling the leasing and management of such assets.

According to a senior IFSCA official, these leased assets could be deployed in both offshore and onshore oil fields. To facilitate this initiative, a consultation paper has been issued, inviting feedback and suggestions from industry stakeholders.

Studies indicate that India’s oil and gas exploration footprint is projected to grow from 0.5 million sq km to 1 million sq km by 2030. In light of this, several stakeholders have raised concerns regarding the necessary approvals for the initiative. The introduction of oil field equipment leasing is expected to play a key role in supporting the country’s oil exploration activities.

Currently, IFSCA oversees 30 aircraft leasing and 15 ship leasing entities. Aircraft leasing firms have already secured 196 assets under lease agreements, while the ship leasing segment has experienced a threefold increase in asset acquisitions within a year.

With oil field equipment leasing now in focus, demand is likely to surge for specialised machinery used in mineral oil and fossil fuel exploration and production.

Globally, oil field equipment leasing has been successfully implemented in countries such as the USA, UK, France, Italy and China. By bringing this model to GIFT City, India is expected to enhance its oil and gas exploration capabilities, further strengthening its energy sector.

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