Owing to non-lucrative natural gas prices, Reliance Industries (RIL) relinquished two natural gas fields at the KG Basin, media reports indicate.
After RIL discovered gas in the two blocks, it took them to the Directorate General of Hydrocarbons (DGH) to declare them commercially viable — declaration of commerciality, in jargon.
At the existing prices of $4.2 per mmBtu, they were not viable. RIL officials, however, maintain that the $4.2 price applies only to the KG-D1 and D3 fields of the KG-D6 region.
Media reports indicate that the two fields will now be auctioned again in the next NELP round by the end of the financial year. Since the cabinet will be taking up the issue of gas prices in some days, the new price may help potential bidders make up their mind.