Moily pulls Reddy note against KG price hike

Comments 0
SummaryIn a rare administrative move, petroleum and natural gas minister Veerappa Moily has withdrawn a note circulated by his predecessor Jaipal Reddy to the members of a ministerial panel, which had opposed an immediate price hike sought by Reliance Industries for the gas from its KG-D6 block.

constrained environment could be worked out,” said an oil ministry source.

In a recent letter to C Rangarajan, RIL executive director PMS Prasad sought market-linked pricing for natural gas and said this was critical for increasing domestic production.

The output from the KG D6 field is constantly declining. At present, the output stands at around 30 mmscmd and could fall further to 20 mmscmd by 2014.

Reddy had also sought to disallow $1-billion capital expenditure recovered by the company which, if accepted, would have inflated its profits from the KG D6 block by $2.2 billion as per an investment multiple ratio agreed to by the government earlier. The matter is now under arbitration.

Single Page Format
Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...