Owing to the absence of Drill Stem Tests (DSTs) to confirm the finds, the Directorate General of Hydrocarbons (DGH) refused to take forward the development plan of Reliance Industries’ (RIL) in block NEC-25.
RIL failed to conduct the above tests to confirm discovery in the NEC-25 block, off the Odisha coast.
The firm made discoveries in D-32, D-40, D-9 and D-10 in the Block NEC-OSN-97/2 (NEC-25) and it submitted a $3.5 billion Integrated Field Development Plan for producing 10 million standard cubic metre per day of gas from these discoveries by mid-2019.
But, DGH, the nodal technical arm of oil ministry, refused to bring the development plan to block oversight panel, called the Management Committee, for approval disputing commerciality of D-32 and D-40.
RIL and its partner BP plc of UK have argue that DGH should have insisted on DST being done when discoveries were being appraised some years back and not now when development plan has come up for approval.
They also feel DSTs are not just expensive proposition that will have bearing on government’s profit take but also not conclusive tests to confirm production profile.
Now, the DGH is learnt to have referred the issue to the oil ministry.
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