 "Cairn India employees work at a storage facility for crude oil at Mangala oil field at Barmer in Rajasthan")
Cairn India is hopeful that its production sharing contract (PSC) for the Barmer oil and gas field would be extended and it gets a fair price for the crude oil.
Mayank Ashar, managing director, said so on Monday, days after the government announced a new Hydrocarbon Exploration and Licensing Policy.
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After the extension of PSCs for 28 blocks, Ashar said he was hopeful the government would extend the policy to already producing areas, where similar hydrocarbon potential can be tapped.
“Existing operators are most suited to develop both unconventional and conventional resources, given their knowledge of the basins they are operating,” he added.
He said the announcement was a step in right direction. “By providing clarity on the future contractual model, gas prices and license extension, the government has made a bold and decisive move. Investors will now have better visibility on such key determinants for planning their investments.”
The government policy allows access to all forms of hydrocarbons, marketing and pricing freedom for gas and moving towards an open-acreage licensing system.
Cairn India, part of the Anil Agarwal-led Vedanta group, had last December petitioned the high court here for a direction to extend its PSC for the Barmer block and to give it a better price for crude oil produced from there.
Agarwal, chairman of Vedanta Resources, told Press Trust of India on Sunday: “We have gone (to court) to help the government... it can help them decide faster.”
