Cairn seeks ONGC nod to extend Rajasthan block permit.

Cairn India has sought partner Oil and Natural Gas Corp's (ONGCs) nod for extension of the licence of their prolific Rajasthan oil block beyond the contractual deadline of 2020.

Cairn's contractual term for exploring and producing oil and gas from the Rajasthan Block RJ-ON-90/2 expires in 2020 and the area is to return to the block licensee, ONGC.

The Anil Agarwal-group company, which wants the term of the block extended by a minimum 10 years, has formally written to ONGC on the issue, sources said.

ONGC, which currently holds 30 per cent stake in the block, has told the oil ministry that the production sharing contract (PSC) can be extended beyond 2020 if all parties to the contract agree on mutually agreeable terms. The state-owned firm will now decide on terms on which it can agree on allowing Cairn to continue to operate the fields.

BS