ONGC, which is the licensee and a 30% owner in the oil-rich Rajasthan block operated by Cairn, has held back $500 million to Cairn India alleging that the expenditure had been inflated. The money was spent by Cairn, the operator, on a particular pipeline as well as capital expenditure and operating costs. The state-owned firm has raised objections on several items in recent months and its share of the expenditure, which it has not paid so far, has accumulated to about $500 million now.
The company is also facing several hurdles in its operations, as ONGC had even refused to sign the minutes of crucial meetings of the management committee while government authorities had not approved the company’s plans to ramp up production to 150,000 bpd from the current level of 125,000 bpd.
Company Name | CMP |
---|---|
ONGC | 264.55 |
Oil India | 635.40 |
Jindal Drilling&Inds | 640.25 |
Hind Oil Exploration | 192.90 |
Deep Industries | 277.80 |
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