BP cribs to oilmin on KG approvals
Delay in getting permits may cost India substantial amount of gas, CEO says in letter to petroleum minister Reddy.business Updated: Jan 02, 2012 20:43 IST
Energy major British Petroleum, partnering Mukesh Ambani-led Reliance Industries Ltd (RIL) in 21 oil and gas fields in India, has expressed “deep concerns” over delays in approvals for carrying out new surveys in the KG-D6 block. The company has warned the government that these delays could cost India substantial amount of gas.
“I am deeply concerned that unless we get approvals and permits to begin sea-bed surveys (in KG-D6) this winter season (staring December 2011), we will lose a year in our goal of bringing materially new amounts of gas to the Indian markets,” Bob Dudley, chief executive, BP Plc, wrote in a recent letter to petroleum minister Jaipal Reddy.
The KG-D6 block, India’s largest gas producing block, has witnessed a substantial fall in gas production in the past few months. The block, which started with a gas production of 40 mmscmd in 2009 and with promises of touching 80 mmscmd during 2010-11 is currently producing only 38 mmscmd of gas.
It is to arrest this fall in production that RIL-BP combine has been seeking approvals from the government to carry out new surveys in the block.
However, differences between the government and the company over the field development plan and expenses already recovered by RIL from sales of gas from the field is currently blocking further development of the field. On its part, RIL has already initiated arbitration against the government.
First Published: Jan 02, 2012 20:36 IST