Govt should consider relief for oil companies, says Ajay Dixit, Cairn CEO

Production of the Cairn Oil and Gas, a Vedanta group vertical, has dropped by 11 per cent following the lockdown, and some of its customers have invoked force majeure. Its Chief Executive Officer Ajay Dixit tells Shine Jacob about the Covid-19 impact on the industry, future plans and the need for government support. Edited excerpts:

What has been the impact of falling oil prices and the lockdown on firms like Cairn?

I would say there is significant impact of Covid-19 on the time schedule for Open Acreage Licensing Policy (OALP) blocks and completion of ongoing projects. The drop in oil prices is also having a significant impact on profitability of the company. Banks may also be reluctant to give loans at these prices.