PSC Amended for CR-ON-90/1 After Long Wait

This month oil minister Mani Shankar Aiyar gave his consent to a more than one-year old proposal by Hindustan Oil Exploration to amend the PSC of onshore block CR-ON-90/1 in Assam, where Premier is operator.

Cleared by Aiyar on November 2nd, the proposal has been pending with the oil ministry since June 20, 2003 when Essar Oil transferred its operatorship and 59% out of its 75% stake in the block in favor of UK-based Premier Oil.

The new revised holding pattern in CR-ON-90/1 is Premier with 84% and Essar with 16%. The DGH and law ministry have already vetted and approved the new order.

The original owner of this block was a consortium of HOEC, Essar Oil and Tullow Oil. Under a complicated system adopted to change the holding pattern, HOEC transferred its 20% participating interest to Essar, increasing its stake to 75%. Tullow also exited the block and sold its 25% interest to Premier Oil.

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