The flagging KG basin D6 block of Reliance Industries has witnessed natural gas output slip further, leading the government to disallow $2.756 billion in cost, Dharmendra Pradhan, oil minister stated.
Reliance Industries Limited along with its partners, Canada’s Niko Resources and Bp plc of UK produced less than sixteen percent of the 31,793.28 million standard cubic meters (mmscm) target from KG-DWN-98/3 or KG-D6 block in 2013-14.
Output dropped to 4,461.91 mmscm or 13.75 percent of the targeted 32,458.72 mmscm in 2014-15 and to 3,939.97 mmscm or 12.24 percent of the target in the following year, the minister said in a written reply to a question in Lok Sabha.
For the present fiscal 2016-17, RIL along with its partners have produced 2,641.67 mmscm of gas till February as against the target of 29,316.69 mmscm, Pradhan stated.
The minister also said that, GSPC too has produced much less than target in the 3 years but no penalty has been levied on it.
In a statement, Dharmendra Pradhan said that, “The gas production from D1 and D3 fields in this (KG-D6) block (of RIL) is much less than the production rates approved in addendum to Initial Development Plan (AIDP).