The Ministry of Petroleum and Natural Resources (MoP&NR) has initiated its drive against non-performing oil and gas exploration and production (E&P) companies and issued notices to 17 inactive licence-holders for their failure to start exploration work as per the agreement, sources said.
Sources said the ministry has yet to initiate action against oil exploration and production companies which obtained licenses in 1999 but are yet to start their exploration activities. Some 40 blocks licenses were revoked where as revocation of four of these was challenged in the court of law. The ministry had initiated process of revoking the licenses but the companies challenged its action in courts and obtained a stay order, sources said.
Sources maintained that the monitoring authority ie Director General Petroleum Concession had delayed investigation against non-performing E&P companies. The ministry has revoked 17 such licenses so far and permits of all oil and gas companies failing to start exploration activities as per their obligation will be cancelled.
The sources informed, "More licenses of inactive companies will be revoked shortly after completing all formalities," adding that the licenses could not be cancelled instantly; rather such companies are issued notices and provided an opportunity to present their cases. Keeping in view the prevailing energy situation, the government has tightened the noose around non-performing E&P companies which obtained licenses and are reluctant to initiate exploration work.
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