RIL-BP Gets A Green Signal to Pump $ 1 billion In The KG basin
RIL and BP Plc’s KG-D6 Block got the approval to infuse $1 billion as an expenditure amount from the panel that caters to India’s showcase gas field. However, this approval was rendered with the condition that they have to bear the expenses for drilling three more wells that will be considered viable, based on a few reports.
A special panel headed by the Oil Ministry takes into account the working at the KG-D6 block, had previously approved the annual operations, and the principal investment required for a period of three years starting from April 1, subjective to minor changes.
In February 2010, RIL presented the Declaration of Commerciality (DoC) of their three findings (D29, 30 and 31). The Oil Minister Jaipal Reddy stated that they will provide the contractor with whatever they might need technically and administratively provided the project is declared viable.
RIL, BP Plc and Niko Resources of Canada have had 60%, 30%, and 10% stake in the KG-D6 Block. A Drill- Stem Test (DST) will act as a determining factor for the approval for cost recovery. Here, it will have to present the data to DHG (Director General of Hydrocarbons) for confirmation. RIL and BP will have to formulate an integrated plan with respect to these three finds and thirteen other discoveries.
This approval surely will mend the relationship between Reliance and the ministry to an extent paving way for a good relationship. B.Ganguly, President, and COO of RIL was highly elated after the meeting and considered it to be a positive move for the company.
RIL‘s determination and optimistic attitude was evident at the meeting where it was even willing to undergo the expenses for the three discoveries on its own which lead the MC (Management Committee) agreeing to submit the contract for reconsideration.
This approval immediately gained positive response in the share market with RIL’s shares heading for a rise.
Recently, the Global Reporting Initiative awarded this Mukesh Ambani led conglomerate with the GRI A+ rating for its report titled ‘Partnering India’s New Future Sustainably’.
Tags: Reliance , Reliance Industries , RIL , Mukesh Ambani
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