Home >companies >news >Delhi HC: Centre says will take decision on extension of Cairn-ONGC PSC

New Delhi: The central government has assured the Delhi high court that it would take a final decision on the extension of a product-sharing contract between Oil and Natural Gas Corporation Ltd (ONGC) and Cairn India for the Barmer block in Rajasthan by 14 October.

“ONGC has forwarded its decision on extension and as per the court’s earlier order we would be granted three months thereon. The decision is under consideration and will be submitted by 14 October positively," Kirtiman Singh, counsel for the government, told Justice Sanjeev Sachdeva on Friday.

Cairn contended that the decision was already delayed as ONGC had pushed deadlines set by the court and that it seemed as though the Centre was looking to do the same.

“We have made additional investments to the tune of $8 million and have kept lenders waiting as there has been no decision yet," Cairn said.

State-owned ONGC and Cairn have been discussing the matter over the past few months and ONGC finally agreed to the extension of the contract on 14 July.

In an order dated 14 December 2015, the court had laid down a timeline for a final decision on the extension of the contract between Cairn and ONGC beyond 2020.

As per the order, Cairn had got an extension of six weeks to furnish the information required by ONGC, which was to take a decision based on it within six weeks thereafter.

ONGC’s decision was then to be forwarded to the Centre, which was directed to take a final decision within three months from such communication.

The court will hear the case next on 4 November, by when the Centre would have taken a final decision.

Also Read: Cairn India says ONGC agrees to extending Barmer contract

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