RIL is believed to have reached up to 1,500-2,000 meters of drilling so far and there is scope for 7,000 to 8,000 meters, for which it would need some foreign partners with expertise in this area. RIL is to begin gas production from KG-D6 later this year. “As per the estimates submitted by the operator (RIL), the development plan for MA discovery is expected to increase the government revenues from the earlier approved development plan for KG-D6 by about $1.6 billion from the revenue generated after recovery of contract costs,” the government had informed Parliament last month.

However, these revenues are dependent upon variation in the projected parameters such as quantum of production, capital costs, operating costs and prevailing oil and gas prices.