RIL's KG block oil field to boost govt revenues by $1.6 bn
Reliance Industries' oil field in its predominantly gas rich KG-D6 block in Krishna Godavari basin will boost government revenues by at least 1.6 billion dollars.
By PTI |
NEW DELHI: Reliance Industries' oil field in its predominantly gas rich KG-D6 block in Krishna Godavari basin will boost government revenues by at least 1.6 billion dollars.
The 1.6 billion dollar revenues from the MA oil find is in addition to the revenues expected from the development of D1 and D3 gas fields in KG-D6 that lie off the east coast, Minister of State for Petroleum and Natural Gas Dinsha Patel said in a written reply to a question in Rajya Sabha today.
"No proposal to enhance the capital expenditure for the approved development plan for D1 and D3 discoveries involving estimated expenditure of 8.83 billion dollar has been received," he said. "However, on August 18, 2007, the operator has submitted a fresh development plan for MA oil discovery in the same block."
Reliance is to begin gas production from KG-D6 later this year.
"As per the estimates submitted by the operator (RIL), the development plan for MA discovery is expected to increase the government revenues from the earlier approved development plan for KG-D6 by about 1.6 billion dollars from the revenue generated after recovery of contract costs," he said.
The 1.6 billion dollar revenues from the MA oil find is in addition to the revenues expected from the development of D1 and D3 gas fields in KG-D6 that lie off the east coast, Minister of State for Petroleum and Natural Gas Dinsha Patel said in a written reply to a question in Rajya Sabha today.
"No proposal to enhance the capital expenditure for the approved development plan for D1 and D3 discoveries involving estimated expenditure of 8.83 billion dollar has been received," he said. "However, on August 18, 2007, the operator has submitted a fresh development plan for MA oil discovery in the same block."
Reliance is to begin gas production from KG-D6 later this year.
"As per the estimates submitted by the operator (RIL), the development plan for MA discovery is expected to increase the government revenues from the earlier approved development plan for KG-D6 by about 1.6 billion dollars from the revenue generated after recovery of contract costs," he said.
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However, these revenues are dependent upon variation in the projected parameters such as quantum of production, capital costs, operating costs and prevailing oil and gas prices.
Reliance is to initially produce 40 million standard cubic meters per day of gas, which will gradually increase to plateau production of 80 mmscmd, he added.
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