Commodity Online
Oil and Natural Gas Corp. (BSE:500312) has asked the government to reimburse USD 4 billion in royalty and cess payments which it pays on behalf of partners like Cairn India (BOM:532792) or permit it to exit from the Mangala field in Rajasthan.



Oil and Natural Gas Corp. Ltd. is mainly engaged in the oil exploration and production activities. Cairn India Ltd. is engaged in the business of surveying, prospecting, importing, exporting and generally dealing in minerals, oils, petroleum, gas and related by-products.

ONGC is emphasizing to the government for reimbursement of royalty and cess that the firm has to pay in excess of its shareholding in blocks like RJ-ON-90/1 in Rajasthan.

The Indian Government had promised in 1990’s to take care of statutory levies on oil and gas production if foreign firms were to invest in India.

On the contrary, ONGC made the licensee and given an option of taking 30% interest in the blocks but without considering the stake it was made liable to pay royalty and cess on entire production.

ONGC is anticipated to lose Rs 14,000 crore in Rajasthan block alone and there are other blocks.

Stock of ONGC lost 1.24% at Bombay Stock Exchange closing at 1142.45. It touched a 52-week high of 1229.8 and low of 538.1.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook