The Directorate General of Hydrocarbons (DGH) has rejected the work programme and budget of Reliance Industries' (RIL) block in Mahanadi basin (MN-DWN-98/2) for the year 2012-13 for failure to complete minimum works programme (MWP).
The DGH has turned down RIL's request for extension of six months under to carry out additional work programme. The regulator had come to this conclusion after carrying out a review and said an extension was only valid till March 2011. “Operator sought extension of six months under Clause A (4) of New Extension Policy to carry out additional work programme. The same was not agreed to by DGH and has been communicated to RIL,” a note of the Petroleum Ministry states.
This particular block was covered under “rig moratorium” policy and such moratorium was applicable for one exploratory well which has been completed on March 6, 2011. “The Minimum Work Programme compliance with regard to the depth commitments as per Article 5.3(b) appears to remain incomplete and the phase two has already expired. In view of the above, WP and budget for the 2012-13 (revised estimate) submitted by RIL for the block MN-DWN-98/2 cannot be agreed to,” the note states. The block MN-DWN-98/2 (D10) covers an area of 9,650 sq. km. and lies in a water depth varying from 500 metres to more than 2,000 metres.
RIL had requested the Directorate General of Hydrocarbons for additional time for its Mahanadi deepwater block under rig moratorium programme. The NELP-I block is currently in Phase-II where the second well MND10-MMA1 is under progress. The block was granted rig moratorium under Rig Holiday policy and accordingly Phase-II was extended up to March 6, 2011.
