Cairn’s production sharing agreement to get an extension?

Government ready to extend production sharing contract (PSC) for Cairn India’s Rajasthan block beyond 2020, sources told Zee Business.

Sources in the petroleum ministry said that Cairn India and ONGC have reached a resolution on the PSC. “Cairn India may get a 10-year extension post 2020,” they said.

On April 05, 2016, Delhi High Court asked both the oil companies to come to a decision regarding the extension of the product sharing contract (PSC). 

However, it is now learnt that ONGC has made its decision and submitted its view to the ministry.

Share price of ONGC and Cairn India were both trading in red. 

At 12.37 pm, ONGC was trading at Rs. 214.15 down 3.90 points or 1.79%. The script opened at 216.65, below its previous closing of Rs. 218.05. It has reached a high and low of Rs. 216.65 and Rs. 213.50 respectively. 

Shares of Cairn India were trading at Rs. 140, down by 6.05 points or 4.14%. The script opened at Rs. 143, below its previous closing of Rs. 146.05. It has touched a high and low of Rs. 143.55 and Rs. 139.50 respectively.