Oil regulator, Directorate General of Hydrocarbons (DGH) has directed Reliance Industries (RIL) to surrender 86% of its KG-D6 gas block area, including 8 gas discoveries worth at least $5 billion, on account of the firm overshooting the time allotted to it for developing the area.
Rejecting 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, the DGH has urged that the company contractually should surrendered 6,601 sq km out of the total 7,645 sq km total area in the block. Meanwhile, the area proposed for cessation has at least 1.15 trillion cubic feet of known recoverable gas reserves valued at $4.83 billion at current prices.
Further, in a letter to Oil Secretary Vivek Rae, DGH has underscored that out of the 19 oil and gas discoveries claimed by RIL, three finds have not been established as commercially viable in absence of test data and for another five, the company is yet to submit investment plans. 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 $3.381 billion, even after expiry of timelines for the same as prescribed in PSC.
| Company Name | CMP |
|---|---|
| Reliance Industries | 1343.10 |
| Indian Oil Corp. | 145.50 |
| BPCL | 309.80 |
| HPCL | 376.90 |
| MRPL | 186.90 |
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