Reliance Industries Ltd.

Reliance Industries (RIL)’s partner, in the D3 block in the Krishna-Godavari (KG) basin, Hardy Oil will be reviewing its investment in India in the light of unattractive pricing and uncertainty surrounding long-term price outlook for natural gas sales.

In a statement on its half-yearly results, Hardy Oil underscored the joint venture (JV) partners might have to surrender portion of the block owing to Indian defence ministry's new policy on access restriction. Defence Research and Development Organisation has classified one-third of the D3 block as 'impact zone' and has imposed certain access restrictions to that area. Also, the new government’s pricing policy implies a significantly lower price than the previously-notified Rangarajan Committee formula.

Hardy has a 10% stake in the block; RIL has 60%, while BP holds 30%. Reliance is the operator of the block. Situated in the KG basin on the east coast, the D3 exploration licence encompasses an area of 3,288 km, in water depths of 400 metres to 2,200 metres, and is located approximately 45 km offshore.