Vedanta intimates of GoI grant of 10 year extension of PSC for Rajasthan Block

Vedanta announced that the Government of India, acting through the Directorate General of Hydrocarbons, Ministry of Petroleum and Natural Gas (the GoI) has granted its approval for a ten-year extension of the PSC for the Rajasthan Block, RJ-ON-90/1 (the RJ Block).

The tenure of the RJ Block PSC is due to expire on 14 May, 2020. The tenure of the RJ Block PSC has been extended for an additional period of 10 years with effect from 15 May 2020. Such extension has been granted by the GoI, pursuant to its policy dated 7 April, 2017 for extension of Pre-New Exploration Licensing Policy (Pre-NELP) Exploration Blocks PSCs signed by the GoI (the Pre-NELP Extension Policy), subject to certain conditions. The applicability of the Pre-NELP Extension Policy to the RJ Block PSC is currently sub judice.

Vedanta has been working in partnership with its joint operation partner, ONGC in the RJ Block. The RJ Block PSC was signed in May 1995 between the GoI and a consortium consisting of ONGC and Shell India Production Development BV. Company currently holds 35% participation interest share of the RJ PSC and one of Company's indirect subsidiaries, Cairn Energy Hydrocarbons, holds additional 35% participation interest share, aggregating Company's total participating interest share in the RJ Block PSC to 70%. The remaining 30% participating interest in the RJ Block PSC is held by ONGC.

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