India approves policy for extension to PSC

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has approved a policy for grant of extension to the Production Sharing Contracts (PSC) signed by the Government of India awarding Pre-NELP Exploration Blocks to enable and facilitate investment to extract the remaining reserves. 

This policy will enable the contractors to not only extract the remaining reserves but also to extract additional reserves by implementing new technologies. In certain fields, additional recovery of hydrocarbons can be obtained through Enhanced Oil Recovery / Improved Oil Recovery (EOR/IOR) Projects. 

The policy will give boost to accelerate and supplement indigenous production of hydrocarbon from existing blocks and act as a progressive step towards achieving the target of 10% reduction in import of crude oil by 2022. 

In addition, the policy brings out detailed guidelines regarding grant of extension, criterion for evaluation of request, time frame for consideration of request, duration of extension etc. The extension of these contracts is expected to bring extra investments in the fields and would generate both direct and indirect employment.

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