The Oil Ministry proposes to raise the government´s share by 5 per cent and insist on explorers accepting Delhi as the seat of any future arbitration, irrespective of any other provision in the agreement, for granting extension to production sharing contracts for small and marginal fields. Reports indicated that government sources have said that the extension policy being worked out in the Ministry does not envisage any concession on royalty and cess to explorers but lays down time limits for the Ministry and its technical arm, the Directorate General of Hydrocarbons, to process and decide applications for extensions.
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