New Delhi, June 26: Essar Oil has agreed to the government’s condition not to raise any funds against Ratna and R-series oil fields for its beleaguered refinery project, so as to expedite signing of the long-delayed contract for the field. Essar Oil, which was awarded the fields in 1995, will provide a letter to ICICI "to the effect that Ratna R-Series field will not be pledged as a security for the loans taken against the refinery project," informed sources said.

The company has also given an undertaking that it would not sell its stake in the field till the development plan stipulated in the Production Sharing Contract is achieved or for a period of 3 years, whichever is later.
The government had in April asked Essar to free Ratna and R-Series fields within three months from loans it had taken from banks and financial institutions for construction of its trouble-torn refinery in Gujarat by pledging the receivables from the fields as collateral.
Senior Essar Group officials last week met Petroleum Minister Ram Naik to expedite signing of the contract for the fields. Following this, Essar wrote to Naik stating the company shall establish a bank guarantee for the minimum investment committed in the field from the date of signing. Bureau Report