(a) whether the Comptroller and Auditor General’s performance audit
regarding production sharing contracts to be signed between private and
public sector for petroleum and natural gas exploration is likely to be
made compulsory by making changes in the provisions of the contract;
(b) if so, the time frame regarding the same; and
(c) if not, the reasons therefor?
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI R.P.N.SINGH)
(a) to (c): As per the Production Sharing Contracts (PSCs), the Government has a
right to conduct audit through its own representatives or through a qualified firm
of recognized Chartered Accountants, registered in India, within a period of two
(2) years of the close of the Financial Year(longer period as may be required in
case of exceptional circumstances). The Government exercised this right and
requested Comptroller and Auditor General of India (C&AG) to conduct the special
audit in eight producing fields namely: Panna-Mukta, Mid & South Tapti, KG-DWN-98/3,
RJ-ON-90/1, Ravva, Hazira, KG-OSN-2001/3 and PY-3, where large stake of the
Government is involved in the form of Royalty, Profit Petroleum. Out of 8 blocks,
C&AG accepted to conduct audit in four blocks namely: KG-DWN-98/3, Panna Mukta
fields, Tapti fields and RJ-ON-90/1 for the years 2006-07 and 2007-08. Further,
C&AG was requested to conduct the audit of 20 producing fields/ exploratory blocks
for years 2007-08 and 2008-09. The proposal has been accepted by C&AG. Hence,
amendment to PSC provision is not considered necessary.