Reliance gets conditional nod for $1-b investment in D6

Decisions on investments over billions of dollar on the country’s biggest gas fields – D6 - were taken today at a meeting which started 11:00 a.m.

The Management Committee that oversees operations of Reliance Industries KG-D6 block considered and conditionally accepted the budget for three years starting 2010-11. It also conditionally approved ‘declaration of commerciality’ for three finds in the block.

It is being termed as ‘conditional’ because the contractor was asked to clarify certain issues. Senior officials said that, “there has been decisions at the meeting…some budget was approved. Some clarifications have been sought, which the contractor has sought time for.”

Declaration of commerciality was considered for D-29, D-30, and D-31.

The Management Committee had to adopt the audited accounts for pending three years starting 2008-09. The audited accounts that have to be adopted are over $1.5 billion, sources said.

This meeting was significant, as was close on the heels of Petroleum Minister S. Jaipal Reddy promising to the contractors’ expeditious clearances for investment proposals.

Gas output from Reliance Industries operated D6 block today was 29 mmscmd against the projected 80 mmscmd. Asked on the ongoing management committee meeting of D6 block, the Minister said today: all technical and administrative support needed will be extended to the contractor.

On whether any conditions have put for granting approval to the D6 contractors, he said the conditions have been put by CAG, the operator was informed about it. The management committee will address all the issues, approvals will be granted subject conditions, he said.

Delayed approvals had led to the company’s board putting on back burner all future investment proposals of Reliance Industries Exploration & Production Group.

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