Lok Sabha Question No. 1951 (UNSTARRED), answered on 2016-11-28
Subject: Delay in Awarding Hydrocarbon Fields
Ministry: PETROLEUM AND NATURAL GAS
Asked by: SATYA PAL SINGH, SANJAY SHAMRAO DHOTRE, RAHUL RAMESH SHEWALE, BHARTRUHARI MAHTAB

## LOK SABHA UNSTARRED QUESTION NO.1951 TO BE ANSWERED ON 28 th  November, 2016

## DELAY IN AWARDING HYDROCARBON FIELDS

## 1951.   DR. SATYAPAL SINGH: SHRI SANJAY DHOTRE: SHRI RAHUL SHEWALE: SHRI BHARTRUHARI MAHTAB:

पेट्रोलियम और प्राक ृ लिक गैस मंत्री

## Will the Minister of PETROLEUM & NATURAL GAS be pleased to state:

(a)  whether  there  have  been  delays  in  the  process  of  awarding  Ratna  and  R-Series Hydrocarbon Fields to Oil and Natural Gas Corporation Limited (ONGC);

(B) if  so,  the  details thereof and the reasons therefor along with the losse incurred by the Government from such delay in terms of rupee and domestic production;

(c) whether the Government has conducted any enquiry to fix the responsibility for the delay in awarding the said fields and if so, the details and outcome thereof; and

(d) the other corrective steps taken/being taken by the Government to avoid such delays and to punish the responsible officials?

## ANSWER

## पेट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज्य मंत्री ( प्राार रन्त्िवत्र ( ) प्रााप्र ामेवध ीी )

## MINISTER OF STATE (I/C) IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a) & b.): In  the  wake  of  the  policy  of  economic  liberalization  introduced  in  the  year 1991, Government took certain initiatives to attract private investment capital in the upstream oil sector to augment the production of oil and gas in the country. Government offered Ratna & R - Series Hydrocarbon Fields for development under Second Bidding Round of Small & Medium Sized Discovered Fields in 1993. Following invitation of bids by the Government, a consortium comprising of Essar Oil Limited (EOL) and Premier Oil Pacific Limited (POL) was the successful bidder for these Fields. A letter of award dated 12.3.1996 was issued to the consortium of successful bidders i.e. consortium of EOL-POL, subject to certain stipulations. Government authorized Negotiating Team of Secretaries (NTS) for concluding the contracts after negotiations. NTS held several meetings and deliberated on several issues related to the contract. However, the Production Sharing Contract (PSC) for Ratna & R - Series Fields could  not  be  signed  between  the  Parties  due  to  various  reasons.    Subsequently,  on  10 th March  2016,  Government  approved  the  cancellation  of  the  award  letter  dated  12.3.1996 issued in favour of the consortium of M/s. Essar Oil Limited and M/s Premier Oil Pacific UK Ltd.  and  reverted  the  Ratna  &  R  Series  fields  to  ONGC,  subject  to  payment  of  cess  and royalty at the current rates, as applicable under the nomination regime. No crude oil/ natural gas has been produced from these fields after fields were offered for bids and hydrocarbon reserves from the field would still be in place. With the present decision the cess and royalty would be realized at the current rates applicable under the nomination regime.

(c)  &  (d.):  The  Negotiating  Team  of  Secretaries  (NTS)  could  not  conclude  this  contact because  of  the peculiar nature of issues which  arose  during the negotiation.  The Government has not conducted any inquiry in this matter. ONGC has already started the process of development of these fields.

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