The policy spelling out the parameters for extension of production sharing contracts (PSCs) -- contracts between the exploration companies and Government – will be out by the year-end, according to the Director-General in the Directorate General of Hydrocarbons, R.N. Choubey.
The PSC for projects such as Panna-Mukta and Tapti (PMT) and Ravva fields are going to expire in the next few years.
“It will be not cash-by-case basis. Policy will lay out parameters and extensions would be considered within those parameters,” Choubey explained at the Petrotech 2014.
BG-ONGC-Reliance Industries, joint venture partners in the Panna-Mukta and Tapti (PMT) fields, have already indicated to the Petroleum and Natural Gas Ministry about their intent to seek extension for the PMT fields, which expires in 2019. The asset in the West Coast accounts for nearly 6.5 per cent of the country’s domestic oil and gas production.
The PMT fields were under a PSC which was given before the licensing rounds were introduced in the country. BG acquired stake in the block in 2002.
Another similar contract that will have to go in for extension is Cairn India-operated Ravva fields in the East Coast.
BG has 30 per cent participating interest in Panna-Mukta and mid-and south Tapti fields. The venture consists of ONGC with 40 per cent stake and Reliance Industries Ltd with 30 per cent.