While listing the matter for further hearing on May 18, the Delhi High Court has asked the Central government to furnish the copy of the policy/law that restricts Cairn India to export the crude oil it produces from its Barmer oil field in Rajasthan.
Cairn India is a subsidiary of NRI billionaire Anil Agarwal promoted Vedanta Group.
There is an ongoing case in the High Court where Cairn India wants directions to the government to permit it to export the excess crude oil that it produces from its Barmer oil fields in Rajasthan. The Centre (in this case the Ministry of Petroleum and Natural Gas) is opposing Cairn’s request for permitting them to export crude oil.
Cairn had petitioned the court in 2015 stating the government had incurred a loss as the company was forced to sell its share of crude from the field to private players at prices 20% lower than global rates. Under its production sharing contract (PSC) with the Centre, Cairn India gets 70 per cent of crude produced from the well and the rest goes to government and has been citing the PSc under which the government or its nominee can pick up the company’s share of crude and the rest could be sold to private players or exported.
On its part, the Centre has informed the Delhi High Court that it cannot allow Cairn India to export excess crude till India attains “self sufficiency”.
Earlier in February this year, the Centre had told the Delhi High Court that its empowered committee of secretaries has decided that Cairn India cannot be allowed to export excess crude produced by it.
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