Oil Gas Cooperation Indian Government Addresses Output Drop of RIL's D6 Oilfield
India's government will address the recent output drop of the KG D6 offshore oil and gas operations of Reliance industries. The Oil Ministry nevertheless resigned considerations to change the Production Sharing Contract with the oil company.
New Delhi/India – The Indian government has warned Reliance Industries (RIL) that the recent 30 percent output drop of the KG-D6 offshore oilfields will be addressed. The administration resigned plans to change the Production Sharing Contract (PSC) with RIL so that the the Indian company could be penalised, the Oil Ministry said. The PSC allows Reliance to first cover exploration and production expenditures by the D6 block's output sales before having to share profits with the government.
“There will be no change in the PSC,” Oil Minister Jaipal Reddy said on the sidelines of the third India–Africa Conference. Only recently, the output of the KG D6 offshore field, a joint operation of RIL and BP, dropped significantly.