Oilcos’ spends on exploration down to trickle
The reasons for the sharp fall in exploration drilling range from not getting permissions from defence and space agencies to environmental issues and the companies choosing to abandon blocks found to be less promising. In three of Cairn India's exploration blocks, the company was forced to declare force majeure when, after more than a year in one case, the company found it could not access the block as part of it fell under the navy's exercise zone and another part under the army's firing zone. In some cases, delayed permissions from the Directorate General of Hydrocarbons (DGH) is also being seen as a hurdle.
Apart from waning interest in exploration, companies have also found that several oil and gas blocks were not worth the additional investments. “After the completion of the minimum work plan, there were many blocks that were
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