The gas output from the D6 block operated by Reliance Industries Ltd (RIL) has fallen short by 28 per cent against the target. This has compelled the Government to review the gas allocation status.

RIL's current output from the field should have been 69.8 mscmd according to the field development plan (FDP). However, the production is 50 mscmd, the Director-General of Hydrocarbons, Mr S.K. Srivastava, said.

Speaking to newspersons after an internal review meeting called by the Petroleum Secretary, Mr S. Sundareshan, the DGH said, “a meeting has been called in early May with the Reliance officials to seek reasons for the drop.”

Production at the D6 block has declined from its peak level of 60 mscmd in the April-June quarter last year. Asked whether the company has given its reasons for this drop, the DG said, “The reasons were not very satisfactory.”

The D6 block contains three producing fields — Dhirubhai-1, Dhirubhai-3, and MA1. Reliance currently has 18 wells in production as against a target of 22 wells, he added.

The company will need to rework its work programme that includes drilling of wells in the current fiscal.

On whether RIL will have to pay to any penalties for not meeting the commitments, the DG did not comment.

As regards the shortfall in gas availability to customers because of the drop in output, the company has been told to give preference to priority sectors such as fertiliser and power.

The Petroleum Secretary said, “RIL has been informed that the first priority is the designated sector.”

Indications are that the Government may ask the company to divert gas from the non-priority sectors such as steel, petrochemicals, and refineries, which may be given fuel only on fall-back basis.

comment COMMENT NOW