Oil regulator refuses to recognise Reliance’s three gas discoveries

The DGH rejected the proposal to declare the discoveries as commercial, saying that Reliance and its Canadian partner Niko Resources had not provided results of tests done on individual wells to confirm the finds

New Delhi: In a disquieting development for Reliance Industries (RIL), oil regulator Directorate General of Hydrocarbons (DGH) has refused to accredit three natural gas discoveries made by the company at its KG-D 6 block, where revival of the sagging output depends on production from new finds, reports PTI.

The DGH rejected D-30, D-31 and D-34 finds in the KGDWN-98 /3 or KG-D 6 block as commercially exploitable discoveries on account of low reserves they may hold, sources privy to the development said.

RIL, which has seen output from its main fields in the eastern offshore block fall by over 20% since March last year, wanted to tie-up the smaller discoveries together to a common facility to produce 5.7 million metric standard cubic metres of gas per day (mmscmd)—double of what state-owned ONGC’s newest gas field, C Series, produces. But DGH rejected the proposal to declare the discoveries as commercial, saying that Reliance and its Canadian partner Niko Resources had not provided results of tests done on individual wells to confirm the finds.

Sources said it also turned down the indicative production profile made by RIL saying, “MDT tests used do not provide sustainable production levels, which is a requirement for evaluation of commerciality of discoveries.”

Reliance, in its proposal, had estimated in-place reserves of 749 billion cubic feet in the three finds, which would have needed $877.2 million in capital expenditure to produce peak rate of 5.7 mmscmd. The Mukesh Ambani-run company had in 2008-09 made four gas discoveries, D-29, D-30, D-31 and D-34 in the KG-D 6 block. In July 2009, it submitted a proposal for declaring them as commercial, a step after which the company could have firmed up investment proposal for bringing the finds into production.

Sources said DGH, in the first instance, rejected Declaration of Commerciality of all the four finds saying the gas volumes were too low to justify production. However, Reliance persisted with its claims and DGH declared D-34 as commercial with an estimated peak production level of 14.68 mmscmd over eight-year life of the field with $2.338 billion investment in development, they said.
 

RIL, however said that it has not received a copy of the report and therefore cannot comment on specific issues. In a release, RIL spokesperson said, "Reliance Industries strongly affirms that as a responsible Operator, it has fully complied with the requirements in the PSC at all times in conducting petroleum operations, and refutes any suggestion to the contrary. The KG D6 project is a significant contributor to the country’s economy and has been globally acclaimed for its cost effective, speedy, flawless execution & smooth commissioning."

On Monday, RIL shares closed 1.84% lower at Rs926.65 per share on the Bombay Stock Exchange, while the benchmark Sensex ended the day flat at 18266 points .

User

SC agrees to hear Kanimozhi's bail plea, issues notice to CBI

The apex court has also asked the investigating agency to inform it about the status of trial in the second generation (2G) spectrum allocation case before a CBI special court

New Delhi: The Supreme Court today sought the Central Bureau of Investigation’s (CBI) response on DMK MP Kanimozhi’s bail plea and also wanted to know the status of Rs200 crore allegedly given to Kalaignar TV, reports PTI.

Terming corruption as the worst form of ‘human rights violation’, the apex court asked the CBI to estimate loss accrued to the exchequer on account of licences issued to telecom operators during the tenure of A Raja as telecom minister.

A bench comprising justices BS Chauhan and Swatanter Kumar also asked the investigating agency to inform it about the status of trial in the second generation (2G) spectrum allocation case before a CBI special court.

The court granted a week’s time to the CBI to file its response on the bail plea of Ms Kanimozhi and Sharad Kumar, MD of Kalaignar TV.

Ms Kanimozhi and Mr Kumar, named as accused in the second charge sheet for allegedly taking bribe of Rs200 crore, were arrested on 20th May after the special court dismissed their bail pleas in the case.

Both Ms Kanimozhi and Mr Kumar have 20% stake each in Kalaignar TV Pvt Ltd, which allegedly received Rs200 crore through a “circuitous” route from Shahid Balwa-promoted DB Realty.

Ms Kanimozhi, the 43-year-old daughter of DMK chief M Karunanidhi, and Mr Kumar have approached the Supreme Court against the order of Delhi High Court and the trial court which had refused to grant them bail in 2G case.

The high court had on 8th June dismissed their pleas after observing that they have strong political connections and that there was a possibility of they influencing witnesses.

Mr Karunanidhi’s wife Dayalu Ammal, who has been left out from the list of accused, owns the remaining 60% share in the channel.

Ms Kanimozhi and Mr Kumar had moved the high court on 23rd May challenging the trial court’s order which had rejected their bail pleas.

The special CBI court had on 20th May rejected the bail pleas of Ms Kanimozhi and Mr Kumar and ordered their ‘forthwith’ arrest. They are currently lodged in Tihar Jail.

User

Strike enters 10th day, no production at Maruti’s Manesar plant

The striking workmen said they are willing to end the stir provided that 11 of their colleagues who were sacked by the company for allegedly inciting others to go on strike, are reinstated

New Delhi: The country's largest car-maker Maruti Suzuki India's (MSI) Manesar facility continues to be completely shut down, with a workers’ strike at the plant entering its 10th day today, reports PTI.

“The talks are going on, but the strike is still continuing. The production at the plant is stopped,” a company spokesperson told PTI.

Around 2,000 workers at the plant have been on strike since 4th June, resulting in a loss of about Rs390 crore for the company on account of a 7,800-unit hit in output till Saturday. The factory had its weekly-off on Sunday.

The striking workers are demanding the recognition of a new union—Maruti Suzuki Employees Union—formed by those working at the Manesar plant, among other things.

Cracking the whip, the company fired 11 workers last week for allegedly inciting others to go on strike.

Yesterday, however, the company said it is willing to recognise the new union—the main demand of the workers.

The workers also said they are willing to end the stir provided all 11 of their sacked colleagues are reinstated.

Meanwhile, unions of various firms in the Gurgaon-Manesar industrial belt, who have been supporting their colleagues at the Maruti facility, will hold public meetings at the gates of 60-65 factories on Monday to raise awareness among workers in the region about the issues at the car-maker’s plant.

The All-India Trade Union Congress, which is leading the agitation along with other unions such as the Centre of Indian Trade Unions, said workers in the region will hold a two-hour tool-down strike on Tuesday in support of the strike.

The Manesar plant rolls out about 1,200 units every day in two shifts. The factory produces hatchbacks Swift and A-Star and sedans DZiRE and SX4.

Shares of the company were trading 0.81% down at Rs1,219.75 apiece on the Bombay Stock Exchange in noon trade today.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)