Discovered small fields: Govt may extend bank guarantee relaxation

The Centre is in favour of extending bank guarantee relaxation to discovered small field (DSF) operators. With crude oil prices crashing and most DSF assets nowhere near production, DSF players had asked for a 75 per cent cut in bank guarantee commitments to free up working capital. This request was granted till February 2021.

Officials in the know say this re­laxation was given during the first wave of the Covid-19 pandemic. “With the pandemic continuing, we are likely to extend this relaxa­t­ion,” a top oil ministry official told Business Standard. To improve pro­ject execution, the petroleum mini­stry will also launch