Spurt in production

From 7,000 barrels a day at present, production at D6 would be ramped up to 5,50,000 barrels of oil equivalent (BOE) per day over the next 6-8 quarters. This is almost 40 per cent of the total hydrocarbons production in the country. In value terms, it adds up to Rs 86,000 crore a year

Plugging expences

Production from the field would save $20 billion in foreign exchange for India, which imports almost 70 per cent of its annual crude oil requirement. The country’s import bill is up 15 per cent compared with last fiscal

Who gets a tap

RIL has started commercial sales of crude oil to refineries on the east coast including HPCL’s Vizag and IOC’s Chennai Petroleum. Currently, sales are done through spot contracts. Once oil production reaches a peak of 40,000 bpd, RIL will enter long-term contracts with refiners

At what price

The price of gas has been fixed at $4.21 per mmbtu by the government for the next five years. While RIL will sell gas in line with the gas utilisation policy approved by a group of ministers, the company said India needed to chart out a roadmap for market-based pricing of gas – similar to oil – in the future

But wait

Sales of gas from the D6 block are subject to the Bombay High Court lifting a stay order. Sources indicated an out of court settlement with Reliance Natural Resources Ltd, with which the court battle is on, is unlikely at this point. RIL expects the country’s legal system to take a decision soon