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    Guideline-Extension of The Exploration Phases Under The Provisions of The Extension Policy

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    Anima Das
    The document discusses India's policy for extending exploration phases under production sharing contracts. It notes that budget submissions by production sharing contractors are not standardized, with some contractors submitting estimates on a completed well basis while others use a dry well basis. The Ministry has decided to apply principles and practices for bank guarantees for unfinished work programs and liquidated damages uniformly. It was decided that bank guarantees can be taken against completed wells while liquidated damages may be charged on a dry well basis. If a well is completed, actual higher liquidated damages can be sought against the bank guarantee already held by the government. Bank guarantees therefore need to be calculated on a completed well basis and be valid for longer than the requested extension.

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    Guideline-Extension of The Exploration Phases Under The Provisions of The Extension Policy

    Uploaded by

    Anima Das
    14 views1 page
    The document discusses India's policy for extending exploration phases under production sharing contracts. It notes that budget submissions by production sharing contractors are not standardized, with some contractors submitting estimates on a completed well basis while others use a dry well basis. The Ministry has decided to apply principles and practices for bank guarantees for unfinished work programs and liquidated damages uniformly. It was decided that bank guarantees can be taken against completed wells while liquidated damages may be charged on a dry well basis. If a well is completed, actual higher liquidated damages can be sought against the bank guarantee already held by the government. Bank guarantees therefore need to be calculated on a completed well basis and be valid for longer than the requested extension.

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    Guideline-Extension of the Exploration Phases Under the Provisions of the Extension Policy

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    The document discusses India's policy for extending exploration phases under production sharing contracts. It notes that budget submissions by production sharing contractors are not standardized, with some contractors submitting estimates on a completed well basis while others use a dry well basis. The Ministry has decided to apply principles and practices for bank guarantees for unfinished work programs and liquidated damages uniformly. It was decided that bank guarantees can be taken against completed wells while liquidated damages may be charged on a dry well basis. If a well is completed, actual higher liquidated damages can be sought against the bank guarantee already held by the government. Bank guarantees therefore need to be calculated on a completed well basis and be valid for longer than the requested extension.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    14 views1 page

    Guideline-Extension of The Exploration Phases Under The Provisions of The Extension Policy

    Uploaded by

    Anima Das
    The document discusses India's policy for extending exploration phases under production sharing contracts. It notes that budget submissions by production sharing contractors are not standardized, with some contractors submitting estimates on a completed well basis while others use a dry well basis. The Ministry has decided to apply principles and practices for bank guarantees for unfinished work programs and liquidated damages uniformly. It was decided that bank guarantees can be taken against completed wells while liquidated damages may be charged on a dry well basis. If a well is completed, actual higher liquidated damages can be sought against the bank guarantee already held by the government. Bank guarantees therefore need to be calculated on a completed well basis and be valid for longer than the requested extension.

    Copyright:

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    Download as PDF, TXT or read online from Scribd
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    O-19025/9/2001-ONG(V) Ministry of Petroleum & Natural Gas Government of India Shastri Bhawan, New Delhi-110115 Dated: 6th May,

    2008 To The Director General, Directorate General of Hydrocarbons, NOIDA. Subject: Extension of the exploration phases under the provisions of the extension policy. Sir, This has reference to the various extension proposals received in the Ministry in terms of the extension policy which involved submission of BG and LDs by the operator. It was noted that the budget submitted by PSC contractors is not standardized. Many contractor, mainly NOCs, submit estimates on completed well basis while others submit on dry well basis. 2 The matter has been considered in the Ministry and it has been decided to apply the principles and practice of arriving at BG for unfinished work programme and LD uniformly to all cases. It has accordingly been decided that BG may be taken against completed wells while LD may be charged on dry well basis. If the well is completed, then the actual differential (higher) LD may be sought against the BG already held by Govt. Hence, the BG needs to be calculated on complete well basis and its validity should be longer than the extension sought. This issues with the approval of the competent authority.

    Yours faithfully,

    (Sunita Sharma) Under Secretary to the Govt. of India Tel:23389464

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