DGH asks RIL to give up 86% of KG-D6 gas block

Posted By: Religare
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Directorate General of Hydrocarbons, regulatory body under the Ministry of Petroleum and Natural Gas, has asked Reliance Industries to give up 86 of its KG-D6 gas block area, including 8 gas discoveries valued approximately $5 billion, as the firm has overshot the time allotted to it for developing the area.

DGH has rejected RIL's offer to relinquish 4,233 sq km of "low prospectivity area" in the eastern offshore KG-DWN-98/3 or KG-D6 block and said that according to the contract the company should give up 6,601 sq km out of the total 7,645 sq km total area in the block.

"Ministry of Petroleum & Natural Gas may intimate the contractor (RIL) about cessation of Petroleum Exploration License in respect of 6,601 sq km of contract area in the first instance in the block KG-DWN-98/3 under Article 3.11 of PSC," DGH Director General R N Choubey wrote to Oil Secretary, Vivek Rae.

According to the statement RIL has not submitted field development plan for 5 gas finds - D-4, 7, 8, 16 and 23, containing 805 bcf of recoverable reserves worth USD 3.381 billion, even after expiry of timelines for the same as prescribed in PSC.

Further, DGH proposed that RIL should be allowed to retain only an area of 1,044 sq km which will hold the currently producing D1&D3 gas and MA oil and gas field besides a cluster of four satellite fields (D-2, 6, 19 and 22) and another D-34 discovery.

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