PSU explorer ONGC, which holds 30% stake in the Barmer oil and gas block in Rajasthan, wants the extant contract to be extended post its expiry in 2020 without any changes. This, according to analysts, brightens the prospects of Cairn India, which holds 70% of the block and is the operator, getting the lease extended by another decade.
The production sharing contract (PSC) for the Barmer block, which contributes 27% of country’s crude oil output, is set to expire on May 14, 2020.