RIL, Partners to Get $40 mn This Fiscal From Gas Price Hike

Reliance Industries and its partners will get about USD 40 million in additional revenue this fiscal for gas they produce from eastern offshore KG-D6 block after the government raised prices by 33 per cent, as per the media reports.

Niko Resources, which holds 10 per cent stake in the RIL-operated KG-D6 block, said partners will get increased rate of USD 5.61 per million British thermal unit for the gas they produce from MA field in the block, while old rate of USD 4.2 would continue to apply on D1&D3 fields pending resolution of a dispute regarding reasons for drastic fall in output, reported media.

RIL, Partners to Get $40 mn This Fiscal From Gas Price Hike
"Approximately 40 per cent of the natural gas sold from the D6 Block for the period of April to September of 2014 was produced from the MA field and approximately 60 per cent was produced from the D1&D3 fields.

"Based on the company's current projections of natural gas production from the MA field, the revised price will provide incremental revenue to Niko of approximately USD 4 million from the MA field for the period from November 1, 2014 to March 31, 2015," the company said in a statement.

Read more about: reliance industries
Story first published: Wednesday, November 5, 2014, 9:20 [IST]
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