New Delhi, June 05: Videocon Petroleum has earned a temporary reprieve from termination of its contract for Ravva oil and gas field, by agreeing to pay $15 million as part payment for the profit petroleum due to the Government. Petroleum Ministry, which had issued a termination notice on Videocon for non-payment of Rs 290 crore and mortgage of Ravva assets, has accepted its proposal to deduct $15 million from the amount payable to it from sale of oil and gas produced from the field, highly placed sources said.
Accordingly, Hindustan Petroleum Corporation Ltd will deduct $11.9 million, GAIL $1.09 million and Bongaigaon Refinery and Petrochemicals Ltd $2 million from the amount payable to Videocon Petroleum for the oil and gas they buy from the field.
Besides, the three state-run firms will deduct $6 million every month, beginning from June, from Videocon's receivables - HPCL $2 million, BRPL $3 million and GAIL $1 million till all profit petroleum dues are cleared. Bureau Report