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OIL & GAS
 
Vol. IX Issue. 5
RIL-BP warn govt of KG-D6 closure if investment not okayed

17 July 2012

July 17, 2012. Reliance Industries and its British partner BP Plc have warned that eastern offshore KG-D6 gas fields will stop producing in 2015 unless the government approves investments needed to keep the nation's largest gas fields alive. RIL and BP met Oil Minister S Jaipal Reddy to highlight the exigency facing the flagging KG-D6 fields due to his ministry not approving annual budgets and capital spending for three years. RIL-BP said output at KG-D6 will continue to fall in absence of interventions. KG-D6 output has dropped to below 30 million standard cubic metres per day (mmscmd) and is projected to further fall to 20 mmscmd by next year. Gas output dip, from 61.5 mmscmd achieved in March 2010, has pulled down power generation and industrial production. While the oil ministry-controlled block oversight committee is supposed to approve spending before beginning of a fiscal, in case of KG-D6, budgets and work programmes for 2010-11, 2011-12 and 2012-13 have not been approved.

      
 
 
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