DGH wants PSC extension feedback

Vol 18, PW 25 (13 Aug 15) News in Brief

Cairn, the Panna, Mukta partners and the PY-3 consortium will be among those pleased to hear the government is in a hurry to finalise a policy granting 10-year PSC extensions for 28 small and medium-sized fields by end-2015.

"We received a letter from the DGH asking for our comments on the draft policy," says one operator, on August 10. "We will reply in seven days." In exchange for extensions, the government wants to increase its share of profit petroleum to 50% for small fields and to 60% for medium-sized fields.

Presently it takes 25-60% of revenues as profit petroleum. Also the draft policy says extension applications should be made two-five years in advance with OC approval.

"We asked the DGH to consult companies," confirms a ministry source. "They met companies in end-July.

We're waiting for their findings to send to the cabinet." Cairn wants to extend its Rajasthan PSC beyond 2020 and Ravva beyond 2019 while the Panna, Mukta partners want their PSC to go beyond 2019.