The Production Sharing Contract (PSC) for the Block RJ-ON/6 was entered into on 30 June 1998. Initially, this contract was signed between Government of India (GOI), Focus Energy Limited (Focus) and Oil and Natural Gas Corporation (ONGC). Focus assigned a 90 per cent. interest to Indus subsidiaries ("Indus Group") in January 2006.
Focus is the Operator of the Block and holds remaining 10 per cent. Participating Interest.
ONGC is the licensee of the Block under the PSC and is required to bear and pay 100 per cent of the applicable royalty cess tax and license fees payable to the Rajasthan state government in respect of the Block. ONGC is entitled to acquire a 30 per cent. participating interest in each discovered field in the Block. If this option were exercised by ONGC in respect of all discovered fields, Indus Group’s ultimate participating interest in the Block would be reduced to 63 per cent. ONGC has since notified the Company its intention to exercise this option in respect of SGL field.
In addition, the GOI is entitled to a share of Profit Oil/Gas as calculated under a mechanism provided for in the PSC.