The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has approved cancellation of the Letter of Award dated 12.03.1996 issued in favour of consortium of M/s. Essar Oil Limited and M/s. Oil Pacific UK Ltd awarding the medium sized discovered field of Ratna & R-Series and decided to revert the Ratna and R-Series Fields to ONGC.
These Fields were planned to be awarded under the Discovered Field Policy of the Government announced during 1992 – 93 in the wake of economic liberalization. It was envisaged that the development of these fields through private sector / joint sector development by signing the Production Sharing Contract (PSC) would facilitate in creating additional value for the country from such projects. However, the PSC in respect of these Fields could not be signed during last two decades owing to number of reasons and the intended contribution of the Ratna and R-series fields in achievement of overall policy objective could not be attained.
The Government noted that in the intervening period of more than twenty years there have been substantial changes in the terms and conditions prevalent at the time of issue of Letter of Award dated 12.03.1996.
Considering huge financial stakes for the Government in terms of the statutory levies accruing from crude and natural gas production from these fields and with an overall objective of increasing domestic hydrocarbon production by expeditious development of these fields, the Government decided that the Fields may be reverted back to the original licensee, ONGC, who had initially developed these fields partially and operated and obtained production from these fields till 1994.