Reliance-BP are targeting to bring to production the R-Series and satellite fields in KG-D6 block by 2020, just around the time KG-D6 block's currently producing Dhirubhai-1 and 3 (D1 and D3) fields cease to produce.
Government to move high court against Reliance Industries arbitration award, says oil minister Dharmendra Pradhan
A three-member international arbitration tribunal held that RIL could contractually produce and sell any gas that might have migrated from adjoining fields of state-owned ONGC.
RIL-BP's Rs 40,000-cr investment plan in KG-D6 approved for developing three sets of natural gas discoveries
The finds will add around 20 million standard cubic meters per day (mmscmd) of peak production, according to BP.
Taking a diagonally opposite view to CAG, Parliament's Public Accounts Committee today said RIL is entitled to recover all cost incurred on unviable gas discoveries as government's technical arm DGH had in the first place allowed it to retain the entire KG-D6 block area.
The Privileges Committee of Rajya Sabha has summoned lawyer Prashant Bhushan to appear before it on 10 February in connection with a breach of privilege notice against him for the alleged premature disclosure of a CAG report on allocation of D6 Block in KG Basin.
The new rate would be "fixed on non-discretionary basis," it said, adding the decision is likely to enhance transparency and provide an element of certainty for future investments in gas infrastructure sector.
RIL believes if all the expenses it had incurred in putting up infrastructure as well as royalties and profit petroleum paid to the government on the share of gas produced is accounted for, ONGC will get nothing.
HSBC Global says PSC has no clause for retrospective penalty, so ONGC won’t get much from dispute with RIL
Oil and Natural Gas Corp (ONGC) may not get much compensation even if it is established that natural gas from its idling fields in Bay of Bengal had migrated to adjoining KG-D6 block of Reliance Industries (RIL).
RIL had won the KG-D6 block in Bay of Bengal under the first round of bidding under New Exploration Licensing Policy (NELP) round in 2000.
The most number of discoveries, 51 are by RIL. These are made up 12 oil discoveries and 39 gas finds. Its KG-DWN-98/3 or KG-D6 block alone has 19 oil and gas finds.
Sources said almost all of these plants came up and were financed by lending institutions, based on specific alternative allocations/supply sources much before the KG-D6 block had even acquired a development plan.
Niko holds 10 percent stake in the KG-D6 block where a total of 20 oil and gas discoveries had been made and three out of them are in production.
RIL has slapped an arbitration notice challenging oil ministry's decision to take away 814 square kilometer of its eastern offshore KG-D6 area that contained five gas discoveries.
Crude oil production at 3.21 million tons in December 2014 was 1.4 percent lower than 3.25 million tons in the same month a year ago, according to latest data released by petroleum ministry in New Delhi today.
RIL which reported its first decline in quarterly net profit in over two years, is likely to see upside when its $16 billion expansion projects are completed and telecom venture is rolled out, analysts said.
RIL and its partners BP plc of UK and Canada's Niko Resources would pay royalty on $4.2 per million British thermal unit as is being done presently, official sources said.
Supreme Court appointed former Australian judge Micheal Kerby has so far not accepted becoming the presiding arbitrator in the RIL-Govt KG-D6 cost recovery dispute as Oil Ministry hasn't given its no-objection.