DGH raps Cairn over Rajasthan reserves claim

The Directorate General of Hydrocarbons (DGH) has accused Cairn Energy of UK of violating the terms of production sharing contract by going public on reserves estimates without informing the DGH.

Cairn has said in place reserves in Rajasthan block are in excess of 3.5 billion barrels.

"They (Cairn Energy) cannot raise the reserve estimates without obtaining our consent. They need our validation before making any public announcement on higher reserve estimates," V K Sibal, director general, DGH, said.

Sibal has written to Cairn Energy asking the basis of 3.5 billion barrels of oil in-place reserve estimates.

Sibal said according to the field development plan approved by DGH for the four discoveries""Mangala, Saraswati, Rageshwari, and Bhagyam""on Rajasthan block, the in-place reserves are estimated to be 1.16 billion barrels of oil.

Cairn Energy in a statement Tuesday said in place reserves in Rajasthan block are now in excess of 3.5 billion barrels.