A Management Committee of KG Basin headed by Director General, Hydrocarbons (DGH) has rejected Mukesh Ambani-led Reliance Industries’ demand for appointing international experts to go into reasons for decrease in the production. The committee has found that RIl purposefully lowered the output in the KG Basin and suggested cancellation of contract.
Claiming “geographical difficulties” in gas exploring, RIl has sought 70 per cent reduction of the estimated targets. The Committee found there was no such issues as claimed by the company and most of the wells were under-utilised and not drilled.
The Management Committee found that “the well drilling efforts are not in proportion to the reserves estimated and as envisaged” in the Addendum to the Initial Development Plan submitted by RIl.
Finding violations in the agreement, the Committee found that most of the wells were not drilled by the contractor and this was the main reason for the decrease in output. Releasing the minutes of the Management Committee meeting of October 1 to media, CPI leader Gurudas Dasgupta on Friday accused Petroleum Minister Veerappa Moily of hushing up this crucial report for “protecting the interest of Mukesh Ambani’s bid to loot the nation.”
In his letter to Prime Minister, pointing to the deliberations and findings of the Management Committee, the CPI leader said that the contract with Reliance should be terminated, as it had violated the agreements with Government.
“The Minister has axe to grind because elections are nearing. Moily is thick skinned. In 2011 itself the internationally renowned reservoir expert P Gopalakrishnan had found the RIl’s attempts to decrease the production of gas. Now Moily is parroting the RIl’s demand for bringing in some other international experts for a favourable stand,” said Dasgupta.
The Management Committee had rejected the RIl’s revised estimates of cutting down the production to 70 per cent. It also said the company had violated its agreement with Government. These finding were approved by Petroleum Secretary, but Moily is stonewalling it, claimed the CPI leader.
“I would like to reiterate that the DGH has acted impartially and has given its independent view regarding the shortfall in production. He should not be transferred before the completion of his tenure.
“I would like to emphasise that RIl has been in willful default of the PSC (Prodcution Sharing Contract) for more than three years. In the meanwhile the production has failed to an abysmal level. There is almost a shortfall of 90 per cent. They have refused to drill wells as directed by the Government to shore up production and are putting forth the false alibi of fall in reserves,” said Dasgutpa to Prime Minister demanding the termination of RIl’s contract in KG Basin.
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