Oil India seeks extension of expired licences
Oil India Ltd has pressed for extension of its expired Petroleum Exploration Licenses (PEL) for 15 blocks, without which it cannot hunt for hydrocarbons.
Oil India Ltd has pressed for extension of its expired Petroleum Exploration Licenses (PEL) for 15 blocks, without which it cannot hunt for hydrocarbons.
The company is currently engaged in exploration and development activities in 16 independently held blocks, covering an area of 5,367 square kilometre.
However, its PELs in respect of 15 of those blocks (covering about 4,997 sq km) have expired, which forbids it from commencing or conducting further exploration activities.
“There can be no assurances that we will be granted extensions of these PELs and, consequently, that we will not lose our nomination for these blocks,” OIL said in its red herring prospectus.
Over 90% of Oil India’s blocks are scattered across Assam and Arunachal Pradesh.
In Assam, the company requires licenses for acreages in Dirak, Sadiya, Margherita, Tinsukia, Borhat, Murkongselek and Dibrugarh among others. While in Arunachal Pradesh, the Deomali, Jairampur and Namchik acreages are in want of a license.
The company is also awaiting grant of PELs for block KG-ONN-2004/1 in Pondicherry and block RJ-ONN-2005/2 in Rajasthan from the respective state governments, the offer document said.
Besides, it has also applied for a new license for an area in the Brahmaputra river bed that covers certain portions of its expired petroleum exploration licences. Furthermore, Oil India requires certain licenses under the Forest Conservation Act, 1980 to carry out seismic surveys in areas such as Abhoypur Reserve Forest and the Tarani Reserve Forest.
“If we fail to obtain extensions of the expired PELs, our business could be adversely affected,” the company said.
The company is currently engaged in exploration and development activities in 16 independently held blocks, covering an area of 5,367 square kilometre.
However, its PELs in respect of 15 of those blocks (covering about 4,997 sq km) have expired, which forbids it from commencing or conducting further exploration activities.
“There can be no assurances that we will be granted extensions of these PELs and, consequently, that we will not lose our nomination for these blocks,” OIL said in its red herring prospectus.
Over 90% of Oil India’s blocks are scattered across Assam and Arunachal Pradesh.
In Assam, the company requires licenses for acreages in Dirak, Sadiya, Margherita, Tinsukia, Borhat, Murkongselek and Dibrugarh among others. While in Arunachal Pradesh, the Deomali, Jairampur and Namchik acreages are in want of a license.
The company is also awaiting grant of PELs for block KG-ONN-2004/1 in Pondicherry and block RJ-ONN-2005/2 in Rajasthan from the respective state governments, the offer document said.
Besides, it has also applied for a new license for an area in the Brahmaputra river bed that covers certain portions of its expired petroleum exploration licences. Furthermore, Oil India requires certain licenses under the Forest Conservation Act, 1980 to carry out seismic surveys in areas such as Abhoypur Reserve Forest and the Tarani Reserve Forest.
“If we fail to obtain extensions of the expired PELs, our business could be adversely affected,” the company said.