After more than a two hour-long meeting with the Petroleum & Natural Gas Ministry, Reliance Industries Ltd-BP combine has failed to convince the former on the falling output in the KG D6 block and other technical issues.
The buck now stops with the management committee of Reliance Industries-operated Krishna Godavari Basin D6 block on whether the contractors are right in their claims that the output has declined due to technical reasons.
If not convinced, a call could be taken on whether to appoint an international consultant. The management committee that overseas the operations of the block is expected to meet soon.
Vivek Rae, Secretary Ministry for Petroleum and Natural Gas, said that the difference between the Ministry and the contractors (RIL-BP) and the Directorate-General of Hydrocarbons still continues. The Secretary was speaking after the meeting between the Petroleum Ministry and the contractors here.
Petroleum Minister M. Veerappa Moily and senior officials were present at the meeting. The RIL team was led by P.M.S Prasad, Executive Director, and BP was led by Sashi K Mukundan, Region President and Country Head, BP Group.
RIL-BP raised the issue of relinquishing 814 sq. km. area related to five discoveries in the KG D6 block, proposed by the Directorate-General of Hydrocarbons. The partners have been stating that they disagreed with the DGH’s evaluation.
The companies also raised the issue of declaration of commerciality of three discoveries — D-29, D-30, and D-31. The DGH had not accepted the finds as it believed that conventional testing method was not followed.
Rae indicated that there was also a possibility of re-auctioning of the area once it is relinquished, if the Government is not convinced by the arguments put forth by the contractors. The Ministry, however, maintained that the intent was to monetise the discoveries at the earliest within the legal framework.
When contacted by Business Line , in a joint statement BP and RIL maintained that the meeting with senior Ministry officials is a positive step to resolve long drawn issues in the KG D6 block impacting some of the existing satellite discoveries.
“We believe that any decision will be taken in the best interest of energy security of the country,” they said.