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 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.

EDITORIAL OF THE DAY

  • The government must only sell PSU stocks that are in demand

    The government’s move to change the methodology of selecting merchant bankers for divesting stake in various public sector undertakings would save d

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

Delhi and its democratic core

In the last one month, questions have been raised about ...

Kuruvilla Pandikattu SJ

Moral basis for collective living

Laudato si (Praise Be to You”) the second circular letter ...

Dharmendra Khandal

Have you spotted those wasps, yet?

Wasps are insects that ride on the monsoon winds. I ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture