In what may come as a relief to Cairn India and encourage it to increase the pace of investment, the Vedanta group company’s prolific Barmer oil and gas block has been granted an extension of 10 years or economic life of the field, whichever is earlier. Extension was also granted to nine other blocks wherein recoverable reserve is yet to be fully exploited. The private oil explorer has been seeking extension of the production sharing contract (PSC) for this field, with reserves of 318.31 MMT of oil and oil equivalent of gas, since 2009. The PSC was due to expire on May 14, 2020. Cairn’s another block — in Cambay Basin with reserves of 29.10 MMT — has also been given extension. The other operators to benefit include GSPC, Essar, ONGC, Focus and HOEC, and the beneficiary states are Rajasthan, Gujarat and Assam.
The government’s step, a formal nod to which was given by the CCEA on Wednesday, is progressive towards achieving the target of 10% reduction in import of oil by 2022, and will help in accelerating and augmenting domestic production of hydrocarbons from the existing blocks. Read More…
Credit By: financialexpress.com
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