Reasoning incompliance of the company’s bidding process with regards to Ministry of Petroleum and Natural Gas' guidelines, India's oil and gas regulator--Directorate General of Hydrocarbons (DGH) -- has dismissed Reliance Industries’ (RIL) price recommendation for the Coal Bed Methane (CBM) gas, to be produced from its Sohagpur blocks. Reliance Industries had proposed price for CBM at $12.93 per million British thermal unit (mmBtu) at $100 per barrel oil price.
Taking a U-turn from its earlier stance, the upstream oil regulator wrote to the ministry on June 22, stating that the pricing for CBM not being in accordance with last year's CBM pricing and utilization policy, with the bids being invited only from selective users. The sector regulator on April 12, 2012, stated to the oil Ministry that the bidding process followed by the company to derive the price for CBM gas was in compliance with Article 18.6 of the Production Sharing Contract and subsequent to guidelines issued by Ministry of Petroleum and Natural Gas.
| Company Name | CMP |
|---|---|
| Reliance Industries | 1365.10 |
| Indian Oil Corp. | 145.85 |
| BPCL | 312.05 |
| HPCL | 370.95 |
| MRPL | 183.20 |
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