Edward S Sampson, President and CEO of Niko Resources, the Canadian oil company said the business environment in India appears to have improved significantly as evidenced by the release of a government-appointed committee’s report on domestic gas pricing.
He said this in a message to shareholders. It may be noted that the firm is jointly exploring hydrocarbon with Reliance Industries in the D6 and NEC-25 blocks.
It may be recalled that in December 2012, the Rangarajan Committee a pricing formula for natural gas under which the gas produced from the wells in the D6 block would get between $8 and $8.50 a mmbtu, compared with $ 4.20 a mmbtu now.
The centre reviews the recommendations and would take a decision on implementing it soon, reports suggest. The field development plan for an additional development area in the D6 Block was submitted in January 2013. The plan for the development of the NEC-25 Block is to be submitted by March 2013.
Niko has 10 per cent share of the D6 block. Reliance Industries, which is the ‘operator’ of the block’ has 60 per cent and British Petroleum has the other 30 per cent.
Leave a Reply
You must be logged in to post a comment.