The Directorate General of Hydrocarbons (DGH), the technical arm of the union petroleum ministry, is not in favour of approving the Reliance Industries’ (RIL) proposal to conduct separate testing for D-29, 30 & 31.
Earlier in May, the firm sought permission for conducting separate tests at its three gas discoveries i.e D-29, 30 & 31. This is a shift away from the company’s earlier stand to conduct a a single test to establish the three finds.
Last year, DGH asked the firm to conduct separate testing for each of the find. But the company did not agree to it at that time.
Now RIL softened its stance and proposed to conduct separate testing for these discoveries. However, DGH Director General RN Choubey on May 10 wrote to Oil Secretary Vivek Rae that the time period for submission of DOC (Declaration of Commerciality) for the three gas discoveries has already expired.
In the letter, the DGH pointed out that there was no provision in the Production Sharing Contract (PSC) to allow additional appraisal time beyond the stipulated appraisal period. Additionally, the exploration period of the block is already over, it said.
Choubey reminded Oil Secretary of DGH recommendation of asking RIL to relinquish 6,601 square kilometre or 86 per cent of the total 7,645 sq km area in the KG-D6 block as the firm has overshot the time allotted to it for developing the area.
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