Red tape holding up KG6 work, RIL tells government | business | Hindustan Times
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Red tape holding up KG6 work, RIL tells government

Mukesh Ambani's Reliance Industries Ltd has warned that gas production from KG-D6 — which is India's largest gas producing field — may see a further cut in gas supplies as the petroleum sector regulator, the Directorate General of Hydrocarbons, is holding back critical permissions. Anupama Airy reports. Simmering problem

business Updated: Jun 24, 2011 01:59 IST
Anupama Airy

Mukesh Ambani's Reliance Industries Ltd (RIL) has warned that gas production from KG-D6 — which is India's largest gas producing field — may see a further cut in gas supplies as the petroleum sector regulator, the Directorate General of Hydrocarbons (DGH), is holding back critical permissions.

"Nearly three months are over in the current year and the operator (Reliance) has been carrying on production operations despite no approvals," RIL has said in a June 16 letter to the DGH and petroleum ministry.

"Though normal production operations are continuing as shutting production is not a solution, other activities like workover of wells in D1D3 (the two gas producing fields in KG-D6) and MA (the oil producing field in KG-D6) are on hold due to absence of approvals," RIL said in its letter.

The company said it had a planned work programme to maintain certain production levels in the oil and gas producing fields in the KG-D6 block, "in the absence of which production levels would fall further."

"This would lead to further cuts in gas supply," RIL told the DGH and petroleum ministry. http://www.hindustantimes.com/images/HTPopups/230611/24_06_11-buss-21b.jpg

The fall in gas production from Reliance's KG-D6 field is a matter of concern, as it has impacted gas supply to crucial industrial sectors such as steel.

A Reliance spokesperson refused further comments, saying the letter is self explanatory.

The DGH has also kept the approval of 2011-12 budget for D1D3 on hold. In the absence of a clear budget approval, Reliance said it cannot commence drilling activities.

This in turn means that wells will not get completed within the current budget year, and their getting commissioned by the 2012-13, which is already an extended deadline, becomes all the more difficult, Reliance said, calling for "immediate approvals".