RIL, BP investment in MA field to shrink to $1.96bn : Reports

Disappointed with the production in KG D6 basin, Reliance Industries Limited (RIL) and British partner BP plc have decided to cut the investment they had planned for developing MA oilfield in the region. The companies have cut the investment by USD 276 million to USD 1.96 billion.

The downward revision comes on the back of the field being consistent in giving a poor output ever since it started production in September 2008, as per the prediction. Currently the oil field is producing less than half of the estimated peak output of 20,000 barrels of oil per day due to water and sand ingress in wells.

Therefore, keeping the concerning factors in mind, the firms have decided to revise the plan for development of MA field in terms of production. As per the sources in the know of development, Revised Field Development Plan has been submitted to the government for approval, which proposes capital expenditure at MA field at USD 1.96 billion as against a capex of USD 2.234 billion approved in 2006 by RIL.

Read more about: reliance industries
Story first published: Friday, July 27, 2012, 14:42 [IST]
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