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How govt's late afterthoughts and claims have haunted oil and gas sector

Problems in production-sharing agreements with the government have haunted private oil and gas companies for years

Under the production-sharing contract, the three Rajasthan fields had different field development plans. Cairn, however, chose to turn the most productive of them —Mangala — into a hub for all three with a common processing unit and pipeline infrastr
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Under the production-sharing contract, the three Rajasthan fields had different field development plans. Cairn, however, chose to turn the most productive of them —Mangala — into a hub for all three with a common processing unit and pipeline infrastructure. The picture is representational

Shine Jacob
Old timers in Cairn Energy used to call the find a “living goddess” because of its productivity. Maybe that was why the company chose to immortalise it by naming it Aishwarya, for the former Miss World-turned-actor, when it was discovered in 2000. In 2020, however, Aishwarya is one of three fields owned by Cairn Oil & Gas — Mangala and Bhagyam being the other two — that is mired in controversy.

In 2011, the Rajasthan fields became part of Anil Agarwal’s Vedanta group. This May, the government sent Vedanta an arbitration notice involving a $520 million demand for alleged discrepancies