Consultant for KG-D6: Moily says OilMin hasn't moved Cabinet
Oil Minister M Veerappa Moily today said his ministry has not moved the Cabinet for appointing a consultant to study the reasons for falling gas output at the KG-D6 block operated by Reliance Industries.
Bangalore: Oil Minister M Veerappa Moily today said his ministry has not moved the Cabinet for appointing a consultant to study the reasons for falling gas output at the KG-D6 block operated by Reliance Industries.
"Why Cabinet? It's not necessary", Moily told reporters when asked if such an initiative had been taken.
"Oil companies and government can employ any kind of experts. Already people are there. Director General of Hydrocarbons (DGH)...They have all experts on this. Without experts, you can't go ahead", he added.
Reports said a block oversight panel, headed by oil regulator DGH, will meet shortly to decide on Reliance Industries' proposal to slash gas reserves in main fields in its KG-D6 block by two-third and cut investments by USD 3 billion.
The Management Committee (MC), which also comprises representative of the Oil Ministry, has to decide on accepting revised field development plan that slashes recoverable reserves in Dhirubhai-1 and 3 (D1&D3) fields to 3.4 trillion cubic feet from 10.03 Tcf estimated in the original plan of 2006.
Also, two-phase capex plan of USD 8.836 billion (proposed in 2006) has been reduced to USD 5.928 billion.
In the original field development plan for D1&D3, RIL had projected an output of 61.88 mscmd from 22 wells in 2011-12 and 80 mscmd from 31 wells in each of the years after that.
The output has lagged the targets since 2011-12.
RIL, which had hit a peak output of 69.43 million standard cubic metres per day from KG-D6 block in March 2010, is currently producing just 13.62 mmscmd (10.12 mmscmd from D1&D3 and 3.5 mmscmd from MA). This output is way short of 80 mmscmd target for this time of the year.