Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Output of D1 & D3 blocks in KG-D6 basin.
Oct 23, 2013


The gas energy sector in India has been facing rough weather for quite some time now. Falling domestic gas supplies, rising share of costlier imports and controversies on gas pricing remain an overhang on the sector. And as if things were not bad enough already, there is yet another news that makes India vulnerable on energy security front. Reliance Industries Ltd (RIL) has drastically cut its estimates on D1 and D3 gas fields in the KG-D6 basin. These are the same fields that were hyped as one of the biggest gas discoveries in India few years ago.

What is shocking here is the extent to which the company has cut estimates. As per an article in Business Standard, earlier the company had upgraded the estimates on the same fields by around 2.6 times. However, the latest estimate suggests an 87% cut. Reliance Industries Ltd has been under delivering since past three to four years. As per the production sharing contract, the fields were to supply gas till 2029. But with the recent revisions, the contract seems unlikely to be honoured. In fact, the wells are now unlikely to continue producing beyond 2022. There are further doubts if the company has been gold plating costs and suppressing gas production from the block as current gas prices are not attractive enough. It was on the basis of initial estimates and commitment that a critical resource of national importance was given to the company. However, now it seems that the interest of the entire nation has been compromised for private gains.

Data source: Business Standard

This Chart Of The Day was published in The 5 Minute WrapUp - An opportunity India should not have missed...

Equitymaster requests your view! Post a comment on "Output of D1 & D3 blocks in KG-D6 basin.". Click here!

1 Responses to "Output of D1 & D3 blocks in KG-D6 basin."

Sanjeev Kumar singh

Oct 27, 2013

When the project was in development phase , to jack up the cost for ensuring no profit petroleum is shared with government, the cost of the project and estimates of available gas were jacked up. Now RIL wants to spend more money to recover gas. Please note in 99% of the family owned business it is a habit to increase the cost of project to recover the equity which is supposed to be put by promoter and create personnel wealth out of bank money and public money. This is rampant in all the PPP projects. RIL is doing it in a grand scale and cheating the country and our politicians of all shades are hand in glove in such loot. To confuse the public they will spread falsehood , misinformation and other methods to create theories to justifies action.

Like 
  
Equitymaster requests your view! Post a comment on "Output of D1 & D3 blocks in KG-D6 basin.". Click here!

Our Most Popular Charts

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS