Reliance Gets Nod to Raise KG-D6 Budget to $1 bn
India’s oil ministry has pledged conditional support for Reliance Industries' plans to raise gas output while a state-controlled panel approved the budget for the KG-D6 block.
The Economic Times has reported that government-led management committee has given consent to $1.06-billion expenditure for 2012-13. "Whatever contractor needs technically, administratively to raise production, we will do," oil minister Jaipal Reddy told reporters.
The committee, headed by Director General of Hydrocarbons Rajiv Nayan Choubey, also allowed Reliance and its partner BP to develop three other gas fields in the same block but said the operator would be able to recover the costs only after extensive appraisal of these discoveries to formally establish commercial viability, Economic Times report said citing a government source.
The government took the conciliatory approach after RIL agreed to share D6 accounts with the Comptroller & Auditor General (CAG) of India.
Officials said MC has not yet approved the declaration of commerciality (DoC) of D-29, D30 and D31 gas discoveries because of some technical reasons but expressed willingness to give the company time to resolve the issues raised and allow it to develop the fields.