The Directorate General Petroleum Concession (DGPC) Ministry of Petroleum has revoked licences of 16 non-performing exploration and production (E&P) companies, it was learnt. According to Petroleum Ministry sources, three lease licences of Paige, two of Nativous, one of RDC, three of Pyramid, five of Dewan Petroleum Limited and one of Techno Company have been cancelled on account of non-performance. Sources said that some of the companies had acquired lease licenses in early 90s and some in early 2000.
Sources added that with a view to expediting oil/gas exploration in the country, DGPC not only introduced stringent monitoring of the obligatory exploration activities of E&P companies, but also initiated action against non-performing companies and consequently, 16 licences have been revoked. A dozen notices have also been served to other non-performing companies. This will ensure renewed efforts in exploration activities leading toward new discoveries of oil and gas to meet much needed requirements of the country, the official maintained.
DGPC has informed the high ups of the Petroleum Ministry that some of the companies had been securing extension after extension on different grounds without fulfilling their contractual obligations. They got extensions for 14 years, although their initial terms were for three years.
As per DGPC office, in some cases extensions were granted for genuine reasons which were beyond the control of exploration and production companies. The DGPC had targeted 20 companies in the first step for longer delays and poor implementation on work programme and the regulator has now prepared stricter parameters for monthly and quarterly monitoring of the work programme and commitments, instead of waiting for three to four years to cancel exploration licences.
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