Government approval mandated for producing from oilfields with extended reservoir
Government has restricted oil and gas production from fields whose reservoirs extend beyond the contract area unless the operator takes prior approval, a significant change in rules to prevent disputes like the one between Reliance Industries and ONGC over output from a reservoir that straddled both companies’ areas. Model Revenue Sharing Contract (MRSC) is amended to insert two key points on reservoirs extending beyond contract areas.
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