Millennium Post
Business

Unruly RIL unwilling to follow Govt’s order on gas rules

The Oil Ministry had on 28 October ordered RIL to surrender 6,198.88 square kilometres of a 7,645 sq km area in its eastern offshore KG-D6 block, 15 per cent more than the 5,367 sq km the company had voluntarily offered to relinquish.

The excess area being taken away holds five discoveries — D-4, D-7, D-8, D-16 and D-23— with 0.805 trillion cubic feet of gas reserves, or about one-fourth of the restated reserves in the producing Dhirubhai 1 and 3 (D1&D3) fields in the KG-D6 block, and is worth US $10 billion.

RIL President & COO B Ganguly on 11 November wrote to the Oil Ministry, expressing surprise at the order when the field development plan (FDP) and the application for issuance of the petroleum mining lease for the five discoveries was under consideration of the government. The five discoveries, he wrote, are non-associated natural gas find, which under the production sharing contract (PSC), the company was entitled to retain as a discovery area.

RIL said the Directorate General of Hydrocarbons (DGH) communicated that the discoveries are unviable at the current price of $4.2 only on 31 March, 2009, as against the PSC stipulated timeline of deciding the issue within 180 days from the submission and 90 days from receipt of additional information.
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