The Directorate General of Hydrocarbons (DGH) has termed as “economically unviable” the new natural gas finds in the eastern offshore KG-D6 block by Mukesh Ambani owned Reliance Industries Limited (RIL) at the $4.205 per mmBtu approved price.
RIL had in December 2009, submitted to DGH an optimised development plan for four satellite gas fields around the currently producing Dhirubhai-1 and 3 gas fields in the KG-DWN-98/3, or KG-D6, block. It proposed to invest $1.529 billion in producing up to 10 million standard cubic metres per day from the four discoveries in five years’ time.
In a note submitted to the Petroleum and Natural Gas Ministry, the DGH has stated that considering the production profile, the cost estimates and project schedule as provided by operator (RIL), the project yields a negative net present value (NPV) of $239 million at the gas price of $4.2 per mmBtu.
RIL had in December 2009, submitted to DGH an optimised development plan for four satellite gas fields around the currently producing Dhirubhai-1 and 3 gas fields in the KG-DWN-98/3, or KG-D6, block. It proposed to invest $1.529 billion in producing up to 10 million standard cubic metres per day from the four discoveries in five years’ time.
In a note submitted to the Petroleum and Natural Gas Ministry, the DGH has stated that considering the production profile, the cost estimates and project schedule as provided by operator (RIL), the project yields a negative net present value (NPV) of $239 million at the gas price of $4.2 per mmBtu.
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