Vedanta seeks govt intervention in Cairn India's oil exploration issue in Rajasthan block

Posted By: Religare
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Vedanta seeks govt intervention in Cairn India
Vedanta Resources chairman Anil Agarwal has written a letter to the Prime Minister of India seeking his intervention in the Cairn India's unresolved issue with Directorate General of Hydrocarbons (DGH) for permission to explore in the Rajasthan block.

"The Rajasthan Production Sharing Contract (PSC) and the mining lease have enabling provisions that allow carrying on exploration in development area; however, we have been asked to obtain government approval," Agarwal, whose group had last year acquired Cairn India, wrote to Prime Minister on July 6.

Reports said that Cairn India has been looking to increase Rajasthan field output from current level of 175,000 barrels per day to 300,000 bpd (15 million tonnes per annum). The company has been seeking the permission of oil ministry to explore within the 3,111 square kilometer ring-fenced area that contains 25 discoveries.

However, the DGH has held the permission on the grounds that exploration could not be allowed within an area that has been defined after discoveries for production of hydrocarbons.

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