New Delhi: oil regulator DGH recommended additional punishment 781 million for Reliance Industries, taking just fine on the company for less than the projected natural gas from the kg-D6 field to 1.786 billion dollars.
The Directorate General of hydrocarbons (DGH) last month, recommended that the Ministry of oil that 781 million dollars the cost incurred in the RIL kg-D6 are forbidden to produce, on average, only 26.07 million cubic meters per day of gas against a target in 2012 mmcmd 86.73-13.
It will be an addition to 1.005 billion in reimbursement for output, falling short of targets in 2010-11 and 2011-12, has already banned Top official said.
Reuters"In the 22 July DGH was letter to cancelled total cost recovery of 1.786 billion dollars (1.005 billion dollars plus of 781 million US dollars) to FY 2012-13 to build excess capacity," he said.
He accused RIL has not committed quota wells, drilling has led to a drop in production, which leads to a big chunk of production facilities lying idle or under-utilised.
The RIL established an infrastructure for processing 80 mmscmd of withdrawal, but now produces less than 14 mmscmd.
According to the production sharing contract, RIL and its partners, BP Plc and Niko resources are allowed to deduct all capital and operating costs from the sale of gas before sharing profits with the Government. Creating excess or unused infrastructure affects the Government share of profit, and it is sought to be corrected by disallowing a fraction of the cost.
DGH, said the official, said that after the cost of cancelled, RIL will pay 114 million dollars of additional profit oil by 2012-13 in addition to the $ 103 million the Government has already been properly.
The Ministry of oil still act on the advice of the DGH as previous reimbursement to the disclaimer notice is under arbitration.
Although the DGH has made the case against RIL for not meeting the output regulator gas projects in a separate communication Ministry has taken diagonally opposite points of view on the question of capping the price of gas and the company, being asked to deliver the gas shortage on the old prices.
He said the company could not be held against the alleged withdrawal of the plan due to the dynamic nature of exploration and production.
DGH Anurag Gupta, Chairman of the PSC 1 August wrote that projected production in most blocks will not be identical to the actual output "due to the evolving nature of exploration and production, which should be adapted to the realities of Earth and operational requirements."
RIL and its partners have made until 5.768 billion dollars investment in the development of Dhirubhai-1 and 3 (D1 D3 &) gas field in block kg-D6 and another 1.74 billion United States dollars in Ma deposits in the same area. Another 1.774 billion dollars has been spent as the cost of production or operation costs.
The Ministry in may 2012 year hit notice disallowing 457 million dollars cost up to 2010-11 and 1.005 billion until 2011-12.
Average daily production of gas from the kg-DWN-98/3 (kg-D6 block) in the current year was 86.92 mmcmd according to the approved development plans for fields D1, D3 and Ma fields in this block, which is currently in production.
Output fell after hitting a peak of about 62 in August 2010 year mmcmd.
Production decreased as half D1 D3 & wells and a third of them in Ma area closed due to water loading/sand. In addition the RIL drilling not accused DGH all its 31 committed D1 D3 & wells.
With the other hand fall attributes a significant deviation of the RIL in reservoir behavior and character than earlier predicted a sharp decrease in pressure and began producing water in some wells.
PTI
Disclosure: Reliance Group financed the promoter Network18, which publishes the firstpost-war
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