1. RIL not following PSC be treated as default: Par panel

RIL not following PSC be treated as default: Par panel

Criticising RIL for the sharp drop in natural gas output, the standing committee on petroleum and natural gas asked the oil ministry to take corrective measures to increase production.

By: | Published: April 29, 2015 3:31 AM

A parliamentary panel has asked the government to treat Reliance Industries not drilling committed number of wells in the flagging KG-D6 gas fields as contractual ‘default’ and not just failure for taking remedial action, reports PTI.

Criticising RIL for the sharp drop in natural gas output, the standing committee on petroleum and natural gas in its report tabled in Rajya Sabha on Tuesday asked the oil ministry to take corrective measures to increase production. The ministry told the panel that 50 wells were to be drilled as per the field development plan submitted by RIL to produce from about 10 trillion cubic feet of reserves in Dhirubhai-1 and 3 (D1&D3) gas fields in the KG-D6 block. But RIL drilled less than half of them, leading to output starting to decline from 2011-12. The D1&D3 fields are producing a tenth of 80 million standard cubic metres per day projected output in the development plan. The ministry, as per the report, has not accepted RIL’s contention that the decline was not due to default in implementation of the agreed field development plan but due to downgrading of reserves.

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