DGH sends notices to RIL, Niko | india | Hindustan Times
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DGH sends notices to RIL, Niko

india Updated: Jun 30, 2006 17:33 IST
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Upstream regulator Directorate General of Hydrocarbons has sent notices to Reliance Industries and Niko Resources of Canada, seeking explanation as to how they arrived at the increased figure of 35.4 trillion cubic feet (tcf) of gas reserves in Block D6 as in its own assessment in-place reserves were 11.9 tcf only.

"The proven reserves in the Block are 5.7 tcf and the gross in-place reserves stand at 11.9 tcf," V K Sibal, DGH told PTI.

He said RIL and Niko have been given 15 days to respond on how they arrived at the 35.4 tcf figure. The notice also seeks to know how Block D6 data was given to Gaffney, Cline and Associates for assessment of reserves when as per Production Sharing Contract, the permission of DGH had to be obtained for sending out any data.

"Mine (gas field) belongs to Government of India and profit from exploration in the block is shared with the operator in kind. So, they cannot resort to declaration of reserves or sending out data without our permission," he said.

He said as per the PSC, companies exploring for oil and gas in India are required to notify any discovery or establishment of reserves to the government first and can go public only after upstream regulatory authority DGH approves of it.

"Neither Reliance nor Niko followed the PSC norms and so we have sent a notice seeking explanation," he said.

DGH has also written to Toronto Stock Exchange, where Niko is listed, stating that the reserve announcement was not in line with the PSC and suitable action be taken against the company.

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