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DGH to introduce new policy for extension of production sharing contracts by year-end

16 Jan 2014 Evaluate

The Director-General of Directorate General of Hydrocarbons (DGH), R.N. Choubey stated that policy to lay out the parameters for extension of production sharing contracts (PSCs) between the exploration companies and Government will be issued by the year-end. The PSC for projects such as Panna-Mukta and Tapti (PMT) fields will expire in the next few years.

At present, British Gas (BG)- ONGC-Reliance Industries joint venture is exploring oil and gas in the Panna-Mukta and Tapti (PMT) fields. The production in the region accounts for around 6.5% of the country’s domestic oil and gas production.

Meanwhile, BG- ONGC-Reliance Industries joints venture has already told to the Petroleum and Natural Gas Ministry about their intent to seek extension for the PMT fields, which expires in 2019. BG has 30% participating interest in the Joint venture, while ONGC and Reliance Industries consist 40% and 30% share. The PMT fields are under the PSC framework, which was given before the licensing rounds were introduced in the country.

In order to cut India's dependence on imports for meeting its energy needs, the Government will offer 46 oil and gas blocks under the 10th round of NELP auction under completely revamped terms. Tenth round of NELP auction will be the second highest offering of blocks since the advent of NELP in 1997, a common platform for public and private sector companies to bid for the blocks.

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