Rajasthan News

ONGC Agrees to Cairn Being Given Rajasthan Block Extension.

by RajasthanDirect
Jan 27, 2015

Oil and Natural Gas Corp (ONGC) has agreed to its partner Cairn India retaining the prolific Rajasthan oil block beyond the contractual deadline of 2020 without any condition in a event in New Delhi.

The Board of ONGCBSE in its meeting on January 21 recognised that the signed contracts provides for extension of the block licence only on mutually agreeable terms by all parties — the two partners ONGC and Cairn as well as the government. 

But unlike 2011 when it had conditional approval for Cairn being acquired by Vedanta Group to resolve the royalty dispute, ONGC has not put any pre-condition this time, sources with direct knowledge of the development said. 

The Board merely stated that the licence can be extended on mutually agreeable terms and asked the government to decide on the issue, they said. 

After internal approval by ONGC, the matter will now come up for discussion at Management Committee – a panel headed by DGH and comprising the two partners. Once the MC clears the extension proposal, it will go to the government. 

Src:- http://economictimes.indiatimes.com/industry/energy/oil-gas/ongc-agrees-to-cairn-india-being-given-rajasthan-block-extension/articleshow/46022032.cms

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