RIL prices Gujarat gas at $6.5/unit
In an indication that it will no longer settle for the government-approved price of $4.2 per unit, Mukesh Ambani-led Reliance Industries Ltd (RIL) has for the first time indicated a price of $6.5 per unit for producing natural gas from its shallow-water offshore block (GS-01) in the Gujarat-Saurashtra basin. UK energy major BP is a 30% partner with RIL in the block.
“The price of $4.2 per unit and oil price of $60 a barrel cannot be taken as the basis for pricing and could not be set as a benchmark price since actual prices are expected to be significantly higher,” RIL said in a December 28 letter to the petroleum ministry while declaring the gas discovery from its GS-01 block as commercial.
“The prices considered by the contractor (Reliance) for declaration of commerciality are $6.5 per unit (for gas) and $70/bbl of condensate (oil),” the letter said. RIL has informed the government that the life of the field is nine years with in place gas reserves of 58 billion cubic feet and 1.5 million barrels.
Given that oil and gas reserves of the block are comparatively much less than what RIL is currently producing from its KG basin block, experts said the expectation of a price of $6.5 per unit indicates that RIL wants the government to follow global pricing practices for marketing domestic gas.
RIL spokesperson offered no comments on being contacted by HT. However, sources close to RIL said the cost of gas from fields with less reserves is always more than those with high reserves.
As already reported by HT, RIL has charged the government of unfair discriminationby fixing this “sub-market (or below market) price” for gas being produced by the company from its KG-D6 block.
Enter your email to get our daily newsletter in your inbox
- Aditya Birla Sun Life Asset Management has started talks with potential merchant bankers for the IPO, which is likely to be launched in the June quarter, said the people cited above.
- The Bengaluru-based firm plans to start production as early as in June. That’s audacious, given that the land—260 acres for the plant and 240 acres for two supplier parks—is still in excavation mode.
- The term sheet executed between the two parties in 2015, promised ZO Rooms’ shareholders 7% of Oyo.
- Bharat Forge Ltd and Megha Engineering and Infrastructure Ltd may also submit expressions of interest for the government’s stake in BEML, the people said on condition of anonymity.
- The survey captures the mood of the industry for the two quarters ending June 30, 2021.
- For checking EPF balance without UAN number, users will need to log into their account through the EPF homepage at epfindia.gov.in.
- The 15th Finance Commission has recommended that states be given 41 per cent of the divisible tax pool of the Centre during the period 2021-22 to 2025-26, which is at the same level as was recommended by the 14th Finance Commission.
- Here’s a list of some of the tasks which need to be performed by taxpayers before March 31