Licences of all oil and gas companies failing to start exploration work as per their obligations would be revoked, a senior official of Ministry of Petroleum and Natural Resources said. The government, he said, had tightened the noose around non-performing Exploration and Production (E&P) companies, having the licences, and revoked 11 such permits recently, he told APP.
He said the action was being taken against the inactive E&P companies holding licences for last several years without any ground work. Currently, the official informed that there were a total of 26 such cases, out of which four would be revoked shortly after completing all formalities.
He said licenses were not cancelled instantly; rather such companies were given notices and provided an opportunity to present their cases, saying that all process was completed in a transparent manner before revoking licences. Answering a question, the official said, the ministry had recently signed 70 Supplemental Agreements for conversion to Petroleum Concessions Agreements aimed at expediting oil and gas exploration activities in potential areas of the country.