OREANDA-NEWS. June 10, 2011. Reliance Industries Ltd (RIL) has asked the government to withdraw restriction on movement of expats from one oil and gas block to another as the limitation was hindering its operations.

RIL, which has 26 oil and gas blocks, including the giant KG-D6 fields, has been applying to the Home Ministry for security clearance of the specialised expatriate technical personnel deployed on its offshore vessels, including seismic survey ships, drill ships, tug boats and supply vessels.

The Ministry of Home Affairs (MHA) clearance is accorded to expat staff for a period of one year or the duration of the visit of these personnel, whichever is earlier. RIL in a letter to the Oil Ministry said MHA had vide a letter dated April 8, 2008 permitted it to move expatriates, within the validity of their security clearance, from one block to another block that are allotted by the Government to it.

"However, lately the MHA clearance is being accorded to the personnel with a specific restriction that if the expatriate changes the block of stay within the validity period of security clearance accorded to him, then the operator (RIL) needs to seek a fresh security clearance for the same. This is causing not only difficulty but almost choking our operations," it said.

RIL said the high operation/rental costs of the mobile offshore drilling units (MODUs) which comprise of drill ships, semi-submersibles and jackup rigs, demand prudent and optimal deployment between various blocks to fulfill its drilling and other work commitments.

"Hence, these MODUs move between drilling locations at various blocks... Seeking fresh security clearance every time for (their) movement may not be practical," the company said.

Stating that the availability of specialised, trained expatriates to man these MODUs was very specific and limited, RIL said the MHA clearance once applied afresh takes a period of 3-4 weeks and idling of assets for want of specialized personnel imposes a lot of financial losses.

"Hence we need flexibility in mobilizing these expatriates between blocks allotted to us. Otherwise it would cause huge financial losses in terms of idle assets / services and personnel," it added.

RIL has requested withdrawal of the requirement of fresh clearance while changing the block of stay and reverting back to MHA's April 2008 policy.