Govt approves RIL’s KG plans for 3 years

“There have been decisions at the meeting (of the committee). Some budgets were approved. Some clarifications about certain amounts are required,for which the contractors have sought time,” an oil ministry official said.

RIL has sought permission to invest in the development of the three fields attached to the KG-D6 block. The company can develop the field only after the commerciality of the fields is approved by the management committee. Investments are required to bring fields under production and step up D6 block output,which has plunged to 29 mmscmd from a high of 63 mmscmd reached in June 2010.

Earlier,oil minister S Jaipal Reddy promised expeditious clearances of the company’s investment proposals subject to certain riders. The ministry has asked RIL to give the Comptroller and Auditor General (CAG) access to all records and accounts of D6 block in order to get the approvals.

“Conditions were set by the CAG which was conveyed to the operator. So,in these circumstances,the management committee will be addressing all the issues. Whatever the contractor needs technically or administratively to raise production,we will do,” Reddy had said. “Approvals will be given subject to fulfillment of conditions,” he said.

Although there is no word from the ministry or RIL on the quantum of investments approved for the three fields,indications are that investment proposals worth $1.2-1.4 billion were given conditional approval. FE

Nod with riders

* D6 output has fallen to 29 mmscmd from 63 mmscmd

* RIL has sought nod to develop 3 fields near KG

* Govt has asked RIL to give CAG access to KG records

* Govt has promised quick clearances

SC gives nod to arbitration panel on KG-D6 row

Indu Bhan

The Supreme Court on Tuesday approved an arbitral panel comprising its two former chief justices,SP Bharucha and VN Khare,to resolve a dispute between Reliance Industries (RIL) and the ministry of petroleum over the recovery of cost for developing the eastern offshore KG-D6 gas fields.

Justice SS Nijjar while disposing of RIL’s plea said that the two arbitrators would appoint a third umpire arbitrator to resolve the differences.

Senior counsel Harish Salve,appearing for RIL,said that the Centre is now willing to get the issue resolved through arbitration and had in a letter dated July 5 appointed Justice Khare as its nominee. Bharucha was recommended by Reliance. FE