RIL starts gas production from new well in KG basin

Reliance Industries, which operates the Krishna-Godavari basin's D6 block off the east coast, has

RELATED ARTICLES

started producing gas from the MA-8 well on January 1, its spokesman said on Thursday.

The well has potential to produce 1 million to 2 million standard cubic metres per day (mscmd) of gas and the output is expected to stabilise by the middle of the month, the Reliance official said.

Reliance is currently producing about 10 mscmd gas from the KG D6 block, sharply lower from the 60 mscmd production at the end of 2010. Reliance and partner BP have cited geological complexities for the fall in output but the oil regulator believes they have failed to drill enough wells.

Falling output had already prompted the government to disallow proportionate cost recovery to Reliance, leading to arbitration proceedings over the issue.

Last month, govt allowed Reliance to charge higher prices for gas from April only after the company offered financial guarantees to the government to settle any claims against it over a shortfall in its gas output.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • Government must give up majority ownership in loss making PSU banks

    After four years of braving economic slowdown and provisioning for rising non performing assets (NPAs), public sector banks are in urgent of capital.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

BK Chaturvedi

Cooperative federalism and governance

Improving relations between the states and the Centre to improve ...

Kuruvilla Pandikattu SJ

Reason drives religion, science

Both religion and science are driven by reason, claims Rama ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture