Oil Ministry proposes to extend exploration phase for deep-sea blocks by three years.

The oil ministry proposes to extend exploration phase for companies operating in deepsea blocks by three years, accepting the demand of energy firms that said the seven years allowed by the government may be adequate for onland blocks but challenging areas in deep waters required more time.

In the proposed new regime for blocks, which will be auctioned in future, it has also specified that the government would have the right to impose financial penalties on contractors for 'minor' errors, such as deviations from approved field development plan, delays in executing projects or small technical errors.

The ministry proposes to terminate the contract in the case of a 'major default' such as knowingly submitting false statements to the government and selling of stakes in the block without prior approval of the government, oil ministry officials said.


ET