• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy
• Books
• Gallery

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New Delhi, Nov. 7 The Cabinet Committee on Economic Affairs (CCEA) has approved splitting of an oil and gas block falling in Assam and Nagaland operated by Canoro Resources Ltd into two so that the exploration that previously could not be completed in Nagaland can now be done.

Briefing newspersons after a CCEA meeting, the Home Minister, Mr P. Chidambaram, said, the “CCEA has approved the splitting of the production sharing contract (PSC) for block AA-ON/7 in two parts, to consider separate exploration period of Nagaland part of the block.”

This is to enable carrying out an additional exploration work programme in the Nagaland portion of the this pre-NELP block by signing a separate PSC for it, at terms and conditions not inferior to the existing terms and conditions in the present PSC, he said.

A separate PSC for Nagaland portion of the block, with effective date from August 9, 2006, will be signed, the Minister said, adding that the exploration period of the PSC will be valid for a period of seven years from the effective date.

Canoro would carry out exploration work, including drilling of at least two wells.

There is no financial expenditure involved on behalf of the Government, the Minister said.

The contractors under the PSCs have commitments to carry out exploration work programme, which may lead to discoveries of hydrocarbons.

The proposal would be implemented immediately and a new PSC will be signed between the Government of India and the contractor, the Minister said.

The PSC for the block was signed on February 19, 1999. Petroleum Exploration Licence (PEL) for the Assam portion of the block was granted on March 27, 2001, and the PEL for the Nagaland portion on August 9, 2006. Exploration of phase-III of the block expired on March 26, 2008.

The work programme for all the three phases was completed in the Assam portion of the block only.

More Stories on : Petroleum | Industrial Policy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line