ONGC sees one-time gain on royalty-sharing with Cairn
NEW DELHI |
NEW DELHI (Reuters) – State-run explorer Oil and Natural Gas Corp expects a one-time gain of 15 billion rupees ($326 million) this fiscal year because of a reduction in royalty paid on Cairn India’s Rajasthan blocks, its finance director said.
“In the last two years we paid a royalty of 20 billion rupees and recently the government has decided that royalty should be cost recoverable,” D.K. Sarraf told reporters on Tuesday.
In June, India granted conditional approval to Vedanta for buying a stake in Cairn India from Cairn Energy, and requiring Cairn India to share royalty payments with ONGC.
ONGC and Cairn India co-own several blocks in Rajasthan.
(Reporting by Nidhi Verma; Editing by Jui Chakravorty)
Article source: http://feeds.reuters.com/~r/reuters/INbusinessNews/~3/fYHgyGXhePQ/idINIndia-59044420110830
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