Oil and gas exploration companies are seeking clarity from the government on the tenure of leases issued under the existing production-sharing contracts (PSCs).

Following this, the government set up an inter-ministerial committee led by the union oil ministry. The panel would consider the extension of the tenure of leases under the existing PSCs signed with oil and gas exploration companies.

Clarity on lease tenure would enable companies, which invest crores to produce oil and gas, to use their resources more efficiently.

The extension of the contract before their expiry would allow them to determine the kind of financial commitments they would be willing to make to further develop the block.

Blocks are generally leased out for 15-25 years but companies say that the time frame is too short as in many cases the commercial production extends beyond 25 years.

Some of the companies requesting an extension include JTI, which has sought a 10-year extension of its 18-year-old Dholka and Wavel (Gujarat) oilfield lease, and Cairn India, which has sought a 10-year extension of its Barmer, Rajasthan, lease that ends in 2020, said an official.