Second Covid-19 wave: Cairn Oil and Gas seeks force majeure extension

Globally, oil and gas firms had availed of relaxations in exploration contracts to deal with the disruption.

With oil and gas exploration activities taking a hit because of Covid-19, Cairn Oil and Gas has sought another year’s relaxation on its open acreage licence policy (OALP) blocks under a force majeure clause in line with what public sector undertakings got last year.

Oil and Natural Gas Corporation, Cairn Oil and Gas, and Oil India had invoked force majeure in April 2020 for new exploration blocks, where they have petroleum exploration licences and were required to carry out a committed work programme (CWP) under a contract with the government.

This allowed the companies to legally approach the government to