Cairn Energy declines DGH request
Cairn Energy Plc today declined Indian oil regulator DGH's request for a joint assessment of oil and gas reserves in any field before they are announced to the public.
By PTI |
LONDON: Cairn Energy Plc today declined Indian oil regulator DGH's request for a joint assessment of oil and gas reserves in any field before they are announced to the public.
"We cannot do that (involve DGH in assessment of reserve estimates)," Cairn Energy finance director Kevin Hart told reporters here.
He said the company's policy of reserve disclosure was in line with global practices and that it had been briefing the DGH before they are made public. "But to say that we should involve them in the assessment exercise is not possible."
Cairn Energy's group engineering and operations director Phil Tracy said that it would be difficult to control the price-sensitive information being leaked out if it is revealed in advance.
The Directorate General of Hydrocarbon (DGH) had on August 28 written to all operators that "in order to qualify reports on estimation of in-place/reserves/production profiles of oil and gas fields, DGH has to be made a party through involving it during the studies and estimation of such numbers."
It had warned that "violation of the Ministry of Petroleum and Natural Gas guidelines would be viewed seriously and recourse under the provisions of PSC would be taken to discourage lapses."
Tracy said Cairn was informing the DGH before any discovery or reserve assessment is informed to the company's shareholders through stock market so as "not to catch the DGH completely by surprise."
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