Replying to a question in the Lok Sabha, Mr Singh, Minister of State for Petroleum and Natural Gas, said the four fields have 617 billion cubic feet of reserves and can produce gas for eight years.
The government has approved Reliance Industries’ $1.529 billion plan to produce over 10 million standard cubic meters per day of gas from four satellite fields in the flagging KG-D6 block.
RIL and its partners, BP Plc of UK and Niko Resources of Canada, are likely to start producing natural gas from the four fields around mid-2016, Minister of State for Petroleum and Natural Gas, R P N Singh, said.
The investment plan, which will help boost falling output in the Krishna-Godavari Basin KG-D6 block, has been pending with the authorities for two years.
The KG-D6 block oversight committee, which includes officials from the Oil Ministry and its technical arm, the DGH, on 3 January 2012 approved the investment plan.
“The Management Committee of the block KG-DWN-98/3 (or KG—D6)... has approved Optimised Field Development Plan (OFPD) of four satellite gas discoveries namely D-2, 6, 19 and 22 in the block on 3 January 2012 at an estimated capital expenditure to the tune of $1,529.05 million,” he said.
Replying to a question in the Lok Sabha, Mr Singh said the four fields have 617 billion cubic feet of reserves and can produce gas for eight years.
“The contractor (RIL) has initiated activities related to the OFPD,” he added.
The four fields can produce 10.36 million cubic metres of gas a day by 2016, which will help shore up output from the block, which has seen over 40% decline in production in the past 18 months to just over 34 mmcmd. RIL has so far made 18 gas discoveries in the KG-D6 block.
Of these, D-1 and D-3, the largest among the lot, were brought into production from April, 2009, but output has fallen sharply from 54 mmcmd, in March 2010, to 28.16 mmcmd this month. Together with 6.46 mmcmd of associated gas produced from the MA oilfield in the same area, total production from the block amounts to 34.62 mmscmd.
The company had in July 2008, submitted a FDP to exploit reserves of 1,708 billion cubic feet (bcf) in nine satellite gas discoveries (D-2, D-4, D-6, D-7, D-8, D-16, D-19, D-22 and D-23) in the D6 block at an estimated capex of $5.6 billion.
It later submitted an optimised development plan for four of the satellite gas fields (D-2, D-6, D-19 and D-22) at the end of 2009.
‘More than half of the respondents believe China offers the maximum opportunity for rapid growth opportunities, followed by India at 46% and Brazil at 26%:’ Tata Communications survey.
India has emerged as the second most promising market after China in terms of maximum opportunity for rapid growth among emerging market economies, says a survey.
According to the survey by Tata Communications in association with research company Vanson Bourne, more than half of the respondents believe China offers the maximum opportunity for rapid growth opportunities, followed by India at 46% and Brazil at 26%.
Russia is a distant eighth with just 11% of emerging market business leaders feeling it offers rapid business growth, according to the survey covering 1,600 business leaders from ten emerging and developed markets.
Going ahead, 39% of all global respondents stated that their organisation is looking at expanding into India, making it the second most favoured market for global expansion after China at 51%. 33% identified Brazil as a likely target market and 19% selected Russia.
Furthermore, China led the pack of FTSE Emerging Market Index countries considered to be most progressive, as 42% of respondents from China, India, South Africa and the Middle East selected China. This compares with 27% who selected India and just 1% who indicated that they believed Russia to be most progressive.
Signalling the growing influence of developing markets in the global economy, as many as 85% of business leaders in India look to other emerging markets for growth and plan to increase their investments there in the near future.
Notwithstanding the political uncertainty, 87% of business leaders from both developed and developing markets (China, India, South Africa, France, Germany, Hong Kong, Singapore, the Middle East, the USA and the UK) are actively engaging in emerging markets, the study said.
As many as 61% of Indian companies are currently looking at operating in emerging markets, while 55% of Singaporean respondents, 45% of Middle Eastern and 40% of South African businesses have already set up operations in emerging markets.
"For companies to capitalise on that potential, we need to see greater levels of investment in the infrastructure that is essential to support it. That will inevitably require more focus on developing talent and innovative thinking in markets that can have less educational investment in those areas," Tata Communications MD and CEO Vinod Kumar said.
Interestingly, 75% of Indian respondents selected India as the market they felt offered most rapid growth opportunities and Indian companies expect to increase their investment in emerging markets, including India, by 39% in the next year.
VRL Logistics has got the approval for induction of foreign equity to carry out the business of transportation of goods and passengers and courier services.
The government said it has cleared 16 FDI (foreign direct investment) proposals, including that of VRL Logistics, entailing total investment of about Rs233 crore. However, decision on Mahindra and Mahindra proposal to set up a joint venture for defence manufacturing and 20 other requests has been deferred, the Finance Ministry said in a statement.
“Based on the recommendations of Foreign Investment Promotion Board (FIPB)... the central government has approved sixteen proposals of foreign direct investment amounting to Rs232.67 crore approximately,” the statement said.
VRL Logistics has got the approval for induction of foreign equity to carry out the business of transportation of goods and passengers and courier services. It has also been allowed to bring FDI in aircraft charter services, and wind power generation, involving the installation and sale of electricity produced by wind power generators.
The Karnataka-based company proposes to bring Rs175 crore worth of FDI. CIIE Initiatives, which plans to bring in Rs40 crore worth FDI, has been allowed to increase foreign investment percentage in the Trust.
Mahindra and Mahindra had sought FIPB's nod to set up a JV company to develop, manufacture and provide service support for radar systems and various kinds of defence electronic systems.
Besides, decision on request of HSBC Insurance Services Holdings Limited, London for infusion of foreign investment into an Indian company has also been deferred. The Indian company does not have any operations and also does not have any downstream investments.
Other applications on which decisions were deferred include that of Network 18 Media & Investment, YourNest Angel Fund Trust, Domino Printing Sciences Plc, UK and Advent Business Credit Development Company, Pune.
Five proposals, including that of Bharti Shipyard to undertake additional activities of Defence Production, have been rejected by the FIPB, headed by secretary of economic affairs R Gopalan.
Next meeting of the FIPB is scheduled for 30 March 2012. India allows FDI in most of the sectors through automatic route, but FIPB's approval is required in certain sensitive sectors, like defence and telecommunications.