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Oil, gas extraction allowed prior to nod
Oil, Gas Extraction Allowed Prior to Nod, Petroleum Ministry, Reliance Industries. Ministry approved a mechanism permiting for early monetisation of finds in existing producing locations.
Ministry approved a mechanism permiting for early monetisation of finds in existing producing locations.
The permission had led to RIL finding more gas reserves 2 km beneath the currently producing gas fields, while Cairn found more oil within its prolific Rajasthan fields
In a major development, Petroleum Ministry has allowed companies like Reliance Industries and Cairn India to start producing oil and gas from discoveries even before field investment plans are approved.
To enable early monetisation of discoveries, Oil Minister M Veerappa Moily on October 21 approved 5-page guidelines for production and development of oil and gas discoveries made within an already producing field. The Ministry had in February allowed companies to explore for more reserves within a currently producing oil and gas field. This permission had led to RIL finding more gas reserves 2 km beneath the currently producing gas fields while Cairn found more oil within its prolific Rajasthan fields.
The ministry has now approved a mechanism to enable early monetisation of the finds contained with an already producing area, official sources said.
It allowed companies the option to "submit an integrated development plan (IDP) encompassing multiple new discoveries". Currently, every discovery is treated as a separate factory and operators are required to first get approval of they being commercially viable and then seek approval for an investment plan, called a field development plan (FDP).
The Ministry allowed "submission of declaration of commerciality (DOC) and FDP/IDP together by subsuming DOC within the FDP/IDP". Cases with single discovery will be termed as FDP and in cases of multiple discoveries, it will be termed as IDP, the guidelines said.
"For early monetisation of new discoveries in a mining lease (or producing) areas, the contractor, on his request, may be allowed by the MC to produce hydrocarbons from the notified new discoveries, pending approval of FDP/IDP," the guidelines said.
