Cairn India may get only 5 yrs more in Rajasthan block.

Cairn India is unlikely get more than five years of extension for its Barmer block, with the Directorate General of Hydrocarbons (DGH) rejecting its proposal for a 10-year contract extension up to 2030. A shorter extension is seen casting a shadow on the investment plans the Anil Agarwal-promoted company had lined up for the next few years.

The firm is looking to invest more than $3 billion over the next three years. For this, an extension in the production-sharing contract (PSC) is crucial. In April last year, it had written to the petroleum ministry that the PSC should be extended in the first instance till 2030, since the block had commercial production potential till 2040.

BS