The Oil Ministry proposes to raise the government´s share by 5 per cent and insist on explorers accepting Delhi as the seat of any future arbitration, irrespective of any other provision in the agreement, for granting extension to production sharing contracts for small and marginal fields. Reports indicated that government sources have said that the extension policy being worked out in the Ministry does not envisage any concession on royalty and cess to explorers but lays down time limits for the Ministry and its technical arm, the Directorate General of Hydrocarbons, to process and decide applications for extensions. Under the proposed policy, explorers would have to continue to pay royalty and cess at normal rate. At present, explorers have to pay 20 per cent royalty on crude from onland fields, 10 per cent from offshore blocks and a uniform 10 per cent on gas. Cess is to be paid at Rs 4,500 per tonne. The government´s share would be calculated with a floor of 50 per cent for small fields and 60 per cent for medium fields. The policy would cover 28 fields with an estimated reserve of 43 mt of oil and oil-equivalent gas.