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His smallest movements are keenly noted, but Reliance Industries Ltd Chairman, Mr Mukesh Ambani, on Thursday took media persons by surprise. Only when Mr Ambani came out after his meeting with the Prime Minister, Dr Manmohan Singh, in the latter's office in Parliament did the media know of his presence.
Non-committal
Little was known on what the meeting was about. And even Mr Ambani remained non-committal when asked. All one got from him was: “I met him just like that”.
Mr Ambani's company, Reliance Industries, which is the operator of the largest gas-fields in the country, has been drawing flak from the Petroleum Ministry for falling gas output. Some of the key ministers whom Mr Ambani is believed to have met include the Minister of State for Telecom, Mr Milind Deora, as the company is set to launch its telecom business.
On November 22, the Petroleum Secretary, Mr G. C. Chaturvedi, had said that in next three-four weeks, the Petroleum Ministry will decide on the action to be taken against Reliance Industries for its gas output falling below target from the East Coast fields.
The Secretary had said: “We had sought the views of Law Ministry. Our Ministry is examining their views. In the next three-four weeks, we will be able to decide on the future course of action.”
The Ministry is said to have decided to disallow expenditure incurred in constructing production and processing facilities at D-1 and D-3 gas fields in the Krishna Godavari Basin D6 block that are currently under-utilised and have excess capacity because of drop in output. This was contrary to the production-sharing contract norms.
‘Scrupulous' action
According to reports, the Petroleum Ministry has made up its mind to take ‘scrupulous' action against Reliance Industries, the operator of D6 block for the drop in output below the target.
He said that the Law Ministry had not quantified the amount. Reports had indicated that $1.85 billion of the $5.69 billion investment already made in the facilities will be disallowed and arbitration initiated to recover that from Reliance.
Reliance currently produces 42 mmscmd from the gas-fields. It has not been able to control the drop in output from D-1 and D-3 gas-fields in the block. The operator has been suggesting that the only solution available for it was to develop the satellite fields around the currently producing fields in the block and bring them to production.
So far five gas-fields have been discovered in D6 block. Of this, two (D-1 and D-3) are producing. At the recent management committee commerciality of the Dhirubhai-34 gas fields was agreed upon.
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