Mixed response to DGH plans to audit PSCs

Vol 7, PW 8 (02 Jul 03) News in Brief
     

Plans by the DGH to audit 41 production sharing contracts have met with a mixed response from companies under scrutiny.

British Gas, operator of the Panna, Mukta and Tapti fields offshore Mumbai thinks the idea is a waste of time. "Let us concentrate on increasing production rather than scrutinise what happened four years ago," says a BG source.

Essar Oil has no complaints with the DGH auditing its PSC for RJ-ON-90/5 in Rajasthan. "The audit is welcome anytime," says a source.

"The government is party to the PSC and we don't want to oppose any of its decisions." Geo Enpro Petroleum, operator of Assam's Kharsang field, says it will be, "troublesome to dig out information which is four to five years old. But we cannot take away the DGH's powers by opposing the audit even if it is a violation of the PSC." On 2nd June the DGH floated a tender for the audit and a pre-bid meeting was held on 25th June.

A total of 46 bids were received and they will be opened sometime this month.