Published On:January 10 2014
Story Viewed 2117 Times
DGH proposes tougher norms for extending oilfield contracts of private firms.
The Directorate General of Hydrocarbons (DGH) has proposed stringent norms for extending oilfield contracts of private firms, demanding they should raise the state's share of profit by 5%, they should not be prone to litigation and have a track record of excellent performance including meeting output targets.
This would have an immediate impact on at least three major oil and gas contracts involving Cairn India and BG Plc, and Reliance Industries at a later stage, government and industry officials said. Contracts for the Ravva and Rajasthan fields operated by Cairn and the Panna-Mukta and Tapti fields operated by BG will expire in the next five to six years. Reliance's contract for the controversial KG-D6 block, which has been embroiled in disputes, controversies and arbitration, will be due for renewal in 2025.