KG-D6 Reserves Were Certified Independently: RIL

Thursday, 28 June 2012, 11:48 Hrs
cmt right
Comment Right
cmt right
cmt right
Printer Print Email Email
New Delhi: Reliance Industries refuted suggestions that it may have inflated KG-D6 gas reserves, saying they were certified by leading independent international certifiers and KG fields are facing problems similar to those confronting ONGC's Imperial Energy.

The D1&D3 fields in KG-D6 block were originally certified to hold 10.03 Trillion cubic feet of proved plus probable (2P) reserves, of which about 2 Tcf have already been produced in last three years.

With reservoir complexities hitting output, the firm's junior partner, Canadian Niko Resources, which had a few years back given a prognosis of KG-D6 holding over 50 Tcf of reserves, last week said the remaining 2P reserves may be only 1.93 Tcf. These do not include the reserves 16 satellite fields may hold.

Though Oil Secretary G C Chaturvedi has steadfastly refused to comment on KG-D6 reserves downgrade, Russia's Interfax quoted him saying that RIL had "over-sold its position without being absolutely sure about it" and that "it
is unfair for shareholders and the country at large".

While Chaturvedi couldn't be reached for comments despite repeated attempts, a ministry official said the secretary had not made any comments on KG-D6 reserves to anyone and the Interfax report was "imaginary and wrong".

When contacted, a RIL official said KG-D6 gas reserves were independently certified by leading global consultants as well as by ministry's own technical arm, DGH.

"The ministry is well aware that KG-D6 reserves had been certified by the best international experts and had been verified by the Directorate General of Hydrocarbons," he said.

He said Chaturvedi had used reserves being certified by international experts as a defence of output lagging targets at state-run Oil and Natural Gas Corp's ( ONGC ) most expensive asset, Imperial Energy in Russia.

"The exploration business is fraught with uncertainty and geological surprises are not unknown in the industry. Both DGH and oil ministry have enough professionals with sufficient technical knowledge and experience of oil and gas industry to appreciate this," the official said.

Imperial's Russian assets produced 15,400 barrels per day of oil at end of last year, significantly less than projected 80,000 bpd output when ONGC Videsh Ld acquired the firm for USD 2.1 billion.

The Comptroller and Auditor General (CAG) criticised ONGC in a report last year, and said the falling output resulted in a loss of Rs 1,182.14 crore.

Gas output at KG-D6 fields almost halved to 31.33 million standard cubic meters per day after reservoir pressure dropped unexpectedly and water and sand ingress was reported in wells.

RIL had in 2006 stated that output would rise to 80 mmscmd by 2012-13.
Source: PTI
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..