By Saurabh Chaturvedi
NEW DELHI--India has asked Reliance Industries Ltd. (500325.BY)
to give up about 80% of the area of its natural gas block off
India's east coast, citing delays in the development of the
hydrocarbon reserves, Oil Secretary Vivek Rae said Wednesday.
"After considering the matter, we issued the order today saying
that the discoveries deemed to have been relinquished," Mr. Rae
told reporters. "The notices will be sent to Reliance today
[Wednesday]."
The oil ministry wants Reliance and its partners--the U.K.'s BP
PLC and Canada's Niko Resources--to give up five discoveries in the
block totaling 6,198.88 square kilometres out of a total 7,645 sq
km area in KG-D6 east coast block.
Mr. Rae didn't say how much gas reserves the discoveries held. A
Reliance Industries spokesman didn't immediately respond to a query
seeking comments.
Natural gas output from the Krishna Godavari basin's D6 block,
in which BP has a 30% equity stake, has declined to about 14
million cubic metres a day from 60 mmscmd at the end of 2010. The
companies have cited geological complexities for the steady fall in
output.
Write to Saurabh Chaturvedi at saurabh.chaturvedi@wsj.com
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