DGH supports dry well cost policy

Vol 19, PW 25 (25 Aug 16) News in Brief
     

Atanu Chakraborty is supporting E&P operators demands that unfinished work programmes should be calculated based on the cost of dry wells in line with a DGH policy approved in December 2007.

On August 12, the Petroleum Federation of India organised a meeting at the DGH office in Noida attended by all operators, including Reliance, ONGC, GSPC and Oil India, who complained that the oil ministry's upstream regulator has been arbitrarily imposing penalties against the spirit of its own policy. On July 27, Chakraborty and the heads of all DGH departments heard an ONGC presentation on the same matter.

"Atanu agreed that unfinished work programmes should be calculated on the dry well principle," we hear. A day earlier on July 26 oil ministry joint secretary exploration Amar Nath and director exploration Nalin Srivastava heard a similar ONGC presentation.

"The cost of unfinished work programmes is the biggest issue the ministry must resolve to see investment in the E&P sector," says an operator.