Government grants 3-year drilling moratorium on deepwater blocks up to NELP-V
08 Jul 2010
The government has granted a three-year moratorium on drilling to all deep-water production sharing contracts signed under the various rounds of the new exploration licensing policy till NELP-V.
The Cabinet Committee on Economic Affairs (CCEA) today approved the grant of drilling moratorium of three years to all such deepwater exploration blocks where drilling commitments are pending as on 1 January 2009.
The moratorium would be implemented immediately, allowing the contractors to complete the drilling commitments during the moratorium period of three years, a government release said.
The move is aimed at accelerating exploration of hydrocarbons in the country, which may lead to new discoveries of oil and gas.
The drilling moratorium that applies to 30 PSCs involving three contractors, would involve no financial expenditure on the government, the release said.
The extended period would enable contractors meet the drilling commitments under various PSCs, which have been adversely affected on account of world-wide shortage in availability of deepwater rigs since 2007.
