he oil ministry is proposing about 11 changes in production sharing contracts (PSCs) to allow explorers more flexibility in meeting timelines for developing fields or make it easier for them to exit in case of defence and environmental restrictions as well as give block oversight committees powers to decide dispute over technicalities.
Government sources said the proposed changes, once approved by the Cabinet Committee on Economic Affairs, would apply to existing and future contracts. They would bring relief to several companies, including Reliance Industries Ltd and its partner BP Plc, Cairn India as well as state-run ONGC
Dispute between Directorate General of Hydrocarbons (DGH), the ministry's technical arm which monitors PSCs, and explorers over PSC technicalities have stalled work on bringing as many as 62 discoveries into production and soured investment climate in the oil sector.
Government sources said the proposed changes, once approved by the Cabinet Committee on Economic Affairs, would apply to existing and future contracts. They would bring relief to several companies, including Reliance Industries Ltd and its partner BP Plc, Cairn India as well as state-run ONGC
Dispute between Directorate General of Hydrocarbons (DGH), the ministry's technical arm which monitors PSCs, and explorers over PSC technicalities have stalled work on bringing as many as 62 discoveries into production and soured investment climate in the oil sector.
The changes outlined in the ministry's note, sent to the finance ministry last week for vetting before being sent for Cabinet approval, reflects the Narendra Modi government's desire to clear the air by establishing a rational and clear procedure to deal with delays and other issues reported by explorers.
No comments:
Post a Comment