ONGC Partners In 6 Pre-NELP Blocks May Have To Share Cess, Royalty Load

ONGC Partners In 6 Pre-NELP Blocks May Have To Share Cess, Royalty Load

Oil and Natural Gas Corporation’s partners in six pre-NELP blocks will have to share royalty, cess and other government charges with the state firm in proportion to their stakes, ending the current practice of ONGC alone bearing state levies for entire production, according to an oil ministry proposal that would soon be sent to the Cabinet.

Once the proposal gets the Cabinet’s nod, Vedanta, Essar Oil, GSPC, Focus Energy, Hindustan Oil, and UK’s Hardy Oil would have to bear the burden of government charges in their respective fields where they partner with ONGC.

The Directorate General of Hydrocarbons (DGH) had recently recommended ONGC exit the contract and let other partners share the government charges in proportion to their stakes in these six blocks. But the government didn’t accept the DGH proposal of removing ONGC from the blocks while taking its recommendation of allowing shared liability. Read More…

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