Reliance Industries's gas output falls 10% from April-June quarter to 44 mmscmd

MUMBAI: Reliance Industries' gas output has fallen to 44 million cubic metres a day, down 10% from the April-June quarter, as technical issues continue to dog India's biggest gas field.

Declining output has choked supplies to several customers and forced stranded consumers to shift to imported liquefied natural gas ( LNG), which costs three times as much Reliance's gas.

The director general of hydrocarbons, SK Srivastava, said in Mumbai that Reliance's current production was 44 million cubic metres but declined comment on the outlook for the field, or plans to drill more wells in the block.

Srivastava also declined comment on the CAG report in which the national auditor has criticized the oil ministry for laxity in enforcing provisions of the production sharing contracts with companies such as Reliance Industries and Cairn India Ltd.

"We have just got the report and can only respond after we have studied it thoroughly and cannot offer any comment till then," said Srivastava.

He also said RIL's $1.52-billion plan to develop satellite fields in its KG-D6 block, was completely independent of the issues raised by the CAG. "These new satellite fields are totally separate from this issue and we will look at their development plan in isolation."

On the question of whether the DGH is demanding that RIL drills additional wells in KG D6, Srivastava said Reliance Industries should answer the question. "Ravi Bastia, VP exploration, RIL is here , you should ask him."

On the question of the current status of the RIL-BP deal, Srivastava said, "The amendment to the PSC is yet to be signed. BP will come in only after that is complete."