Petrol Stop

Govt to scrutinise RIL's operations of D-6 block

Friday, 29 April 2011

29 April 2011;economictimes.indiatimes.com:NEW DELHI: The government will thoroughly scrutinise Reliance's operation of its D-6 block and consider if the company should be allowed to recover the costs of wells that are not pumping gas, government officials said amid growing concerns of dwindling supply from the biggest gas field in the country. The field's output has declined in recent months, prompting the government to direct Reliance to stop supplying gas to low-priority sectors to help customers who use gas to make fertilisers or to fire power stations. Output has dropped to about 50 mmscmd against the projected production of 69.8 mmscmd in the government-approved plan. Reliance says the D-6 reservoir has turned out to be more complex than it was envisaged but the company is considering several options to boost output from its flagship asset in its oil and gas business. Government officials say Reliance has not drilled as many wells as it had committed while two wells were not producing any gas. The issues are likely to be discussed in the Management Committee's meeting on May 2. The committee, chaired by DGH SK Srivastava, includes top executives of RIL and a senior oil ministry bureaucrat.