Cairn’s temporary extension for Barmer block continues, latest till Jan

New Delhi, Nov 10 : The country’s most prolific Barmer oilfield operated by billionaire Anil Agarwal-led Cairn Oil and Gas has been denied full extension of production sharing contract once again with the government allowing the company to operate the oilfield only for three more months.
The temporary extension has been given to the company on five occasions since the expiry of the initial licence period in May. The latest extension is now till January 31, 2021.
The company had been reduced to operate on temporary permission from the government which has denied full 10-year extension to the company’s production sharing contract, claiming higher share of profit petroleum.
After prolonged delays, the government had in October 2018 agreed to extend by 10 years the contract for Barmer fields after the expiry of the initial 25-year contract period on May 14, 2020.
This extension, however, was conditional upon the company agreeing to increase the share of government’s profit (profit petroleum) from the oil and gas produced by 10 per cent.
Sources said that with the company challenging the government call for higher profit petroleum in courts and now also issuing a notice on arbitration disputing the claims, a formal extension of Barmer PSC has been denied to the company and it is operating on temporary extensions.