After a delay of eight years, Central Vigilance Commission has finally approved signing of the production sharing contract for Ratna R-Series oil and gas fields in offshore Mumbai with Essar Oil.

Approving the award of the discovered field to Essar Oil-premier Oil Pacific of UK Combine, CVC in its letter dated October 23 stated that it found no irregularities in it and government can go ahead with signing of the PSC, informed sources said.

When contacted, petroleum minister Ram Naik confirmed the development and said, "the file will be put before me in 8-10 days and we would sign the PSC soon after." Signing of PSC for the Ratna R-Series oil and gas field, awarded from the second round of offerings of developed fields in 1993, had been delayed following doubts raised by Members of Parliament, including Amar Singh of Samajawadi Party, about the project, the procedure and the bonafides of the promoters, sources said.

"After a series of internal investigations and study by a committee of secretaries, CVC too has given a clean chit to Essar-Premier Oil Combine to take equity in the $300 million venture with state-owned Oil and Natural Gas Corporation," sources said. While Essar Oil has 50 per cent equity stake in the venture, ONGC has 40 per cent and premier oil, the operator, 10 per cent.The Essar Oil combine had in April 2001 initiated the PSC for the oil fields, estimated to have 500 million barrels of oil in place , and got possession of data package, sources said.

Recoverable reserves are estimated at 100 million barrels of crude oil and 2000 million cubic metres of gas over 15-18 years. Peak oil production rate would be over 22,500 barrels per day for plateau for a period of four years. Located in Ratnagiri shelf about 90 kms south west of Mumbai high in water depths of 45-50 metres, the 1200 sq km block has proven structures (r-12), they said, adding that the Essar combine, as per the development plan for the field, would drill about 30 wells and install 3 platforms in the region. The project cost is expected to be raised by securitising the future receivables from the field, sources said.