Essar Oil has not been able to begin production from the block as the government still has to sign a PSC with the consortium, which has been held up because of issues on royalty and cess to be imposed.
Our E&P capex for FY’10 is $50 million if (signing of contract for) Ratna happens. For our CBM block in Raniganj, it is USD 20 million, Essar Oil Exploration & Production-India Director and Chief Executive Officer, S R Agrawal said.
The company will supply the funds from borrowings, Agrawal said.
Ratna and R-Series, situated 90 kilometers south-west of Mumbai in the petroliferous areas of Bombay High, Bassein, Heera and Neelam fields, have in-place certified reserves of 500 million barrels.
Essar Oil has 50% ownership, while ONGC has 40% and Premier Oil holds remaining 10%.
