Economy

Petroleum Ministry, Reliance agree to disagree on D6 block output

Our Bureau New Delhi | Updated on October 09, 2012 Published on October 09, 2012

Petroleum Ministry without mincing any words today said that it is not convinced with the arguments put forth by the Reliance Industries led consortium of D6 block that output from block cannot be increased.

Speaking at the Economic Editors conference, S Jaipal Reddy, Minister for Petroleum & Natural Gas said that “We are not convinced (on geological complexity). The Directorate General of Hydrocarbons is also not convinced.”

Though the Ministry is concerned about the country's declining gas output which was 9 per cent less in 2011-12 than the previous year mainly because of steep decline in output from Reliance fields, it feels that the situation can be corrected.

Reliance consortium has informed the Ministry that they would not be able to produce as much gas as they had promised to because of geological complexity. “This is being examined,” Reddy said.

On being asked whether the consortium’s field could be exhausted in next five years, the Secretary Petroleum, G C Chaturvedi said “that is their fear.”

Reliance-BP-Niko partners in D6 block have come in for strong criticism for continued drop in output from D-1 and D-3 gas fields as well as MA oil and gas fields in the D6 block. After hitting a high of 60 mmscmd in end 2009, the gas output from D-1 and D-3 is 21 mmscmd and MA fields are 5 mmscmd (taking the total to 26 mmscmd).

Published on October 09, 2012
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