Terming the submission of revised reserves by Reliance Industries Limited (RIL) and its partner Niko as ‘unacceptable’ in their present format, the Petroleum and Natural Gas Ministry has asked all the three partners of the KG-D6 block, including BP, to file revised field development plan (FDP) and approved revised reserves data with the Directorate-General of Hydrocarbons (DGH).
In a communication to all the three partners — RIL, Niko and BP — the Ministry has stated that for approval of the Managing Committee (MC), the proposal for revised FDP, including change in reserves and production profile, must be approved by the Operating Committee (OC) members. In the case of MA field, the DGH has received the OC approved revised FDP which is under examination. In case of D1 and D3 fields, however, no such revised FDP has been submitted by the OC so far, it said.
“In view of the above, it is evident that intimation of revised reserves data to DGH by individual OC members cannot be taken into cognizance for examination as it is not in line with the relevant PSC provisions. Such proposals must be approved by all OC members before submitting to DGH for evaluation and subsequent approval by MC,” the Ministry order noted. It has also noted that BP had given no intimation to the DGH on the revised reserves while Niko had intimated it to DGH through an e-mail on June 21. In the case of RIL, reserves for only D1 and D3 (A&B channels) were provided.
Article 10.14 of the PSC states: “Proposed revision to the details of a development plan or an annual work programme or budget in respect of development and production operations shall, for good cause, and if the circumstances so justify, be submitted for approval to the Management Committee.”
“The DGH and MC can only take cognizance of OC approved proposal of reserves revision and upgrade/downgrade them as per PSC provisions. An MC meeting be convened at the earliest to discuss the issue of reserve revision and direct the contractor (s) to submit a comprehensive OC approved forward plan for KG-D6 block,” the note added.
