Rangarajan for $8 gas, production-linked payments
fe Bureau: New Delhi, Dec 25 2012, 04:09 IST
and the profit-sharing package. However, the profit-splitting formula will be different. The panel has suggested production-based payments to the government, which will be different for onland and off-shore fields of different geological complexities. The proposed model is expected to eliminate disputes related to cost recovery of the contractor, such as the one that is currently ongoing between RIL and the oil ministry.
The panel also suggested that contractors be allowed to continue exploration work throughout the mining lease period unlike the current scheme of allowing exploration only during the assigned period. Conducting exploration after the stipulated time by some of the producers was criticised by the CAG in his last performance audit of oil and gas blocks.
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