Oil ministry to seek tens of millions of dollars from Cairn

The oil ministry will seek tens of millions of dollars from Vedanta’s Cairn Oil & Gas after the Delhi high court held that the firm was liable to pay higher profit share to the government in lieu of its Rajasthan oil and gas block licence being extended beyond the initial term, a top official said.

In the interim, the firm’s Barmer basin block licence, whose initial 25-year term ended on May 15, 2020, has been given an eighth interim extension, the official, who wished not to be identified, said.

“Now that the Delhi high court has upheld the government policy, we will issue recovery notices seeking higher profit petroleum since May 15, 2020,” he said.