Ministry of Petroleum and Natural Resources has tightened the noose around the oil and gas Exploration and Production (E&P) companies, holding non-performing licences by expediting the process to revoke their permits.
"The ministry has so far revoked around 17 licences and all such permits of the companies, failing to start exploration activities as per their obligation will be cancelled," official sources told the media on Thursday. They said the action was being taken against the inactive E&P companies holding licences for last several years without any ground work.
The sources also informed that the ministry's drive against inactive E&P companies was continuing as notices were being issued to more such licence-holders. "The drive is part of the government's efforts to achieve self-sufficient oil and gas sector, keeping in view the prevailing energy situation in the country," they said.
Answering a question, the sources said licences were not cancelled instantly; rather such companies were given notices and provided an opportunity to present their cases, adding that all the process was completed in a transparent manner before revoking licences.
Replying to another question, they said the ministry was in the process to award 32 more blocks to oil and gas companies to step up exploration activities in different parts of the country. "Under the petroleum policy 2012, 46 new blocks have already been awarded," they remarked.