Oil Min puts on hold RIL's KG-D6 management panel meet

Posted By: Religare
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Oil Min puts on hold RIL's KG-D6 management panel meet
The oil ministry has put the crucial meeting of Management committee of RIL's KG-D6 block on backburner, thus increasing the uncertainties over company's USD 1.5 billion plan to revive the falling gas output, as per a media report.

The meeting was scheduled on Tuesday and was suspended after a last minute note by directorate general of hydrocarbons (DGH), which has proposed to the ministry to look at the pricing of new gas.

According to media reports, the empowerd group of minister (EGoM) had fixed the price at USD 4.2 per unit until 2014, while RIL opined that the satellite discoveries were commercially viable only at USD 6 per unit gas price.

The EGoM on December 2, had held the decision to approve company's USD 1.5 billion capex for developing the satellite fields, quoting that the estimate was based on 2006 prices and that the estimates should be based on fresh prices.

The investment is expected to boost the falling gas output from KG-D6 block by 10 million metric standard cubic meters per day, said the report.

However, the year 2011 for RIL seems to be ending with heightened worries, as a report has also indicated that its gas output from KG-D6 gas fields has fallen to a fresh low of 38.66 million cubic metres per day.

Natural gas production from D1 & D3 fields, the first two of the 18 gas discoveries in KG-D6 block, fell to 31.83 mmcmd during the week ended December 18, 2011, while the MA oilfield, added 6.83 mmcmd of associated gas, thus taking the total production to 38.66 mmcmd.

Dion Global Solutions Ltd

Story first published: Wednesday, December 28, 2011, 12:30 [IST]
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