Industry experts suggest that the government, Reliance Industries and BP Plc work towards an early resolution of the issues holding up investments in Krishna-Godavari (KG)-D6 basin.
They feel that improvement in production of natural gas from the basin is essential to meet the ever rising demand for the fuel in the country.
The year 2012 was marked by differences between the petroleum ministry and RIL on issues ranging from restricting cost recovery to falling output from the D6 block.
Considering the potential of the KG-D6 block and the BP investment of $7 billion, it would be expected that the issues holding up investments in KG-D6 would move towards a resolution, says Kalpana Jain, Senior Director at consultancy firm Deloitte.
BP Plc is planning to invest around $7 billion (Rs 38,550 crore) in the RIL-operated D6 block at the KG basin, off the Andhra coast. But there are apprehensions in the industry that the plan is holed up in bureaucratic formalities.
While BP holds 30 per cent stake in KG-D6 block, Mukesh Ambani-led RIL has 60 per cent stake with the remaining held by Niko Resources of Canada.
Experts feel that government must bring about transparent investment climate in the Indian E&P (exploration and production) sector to improve investor confidence.
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