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lying unused or under-utilised. The Petroleum Ministry in May 2012 slapped a notice on RIL disallowing $457 million in cost till 2010-11 and $1.005 billion till 2011-12. The average gas production from KG-DWN-98/3 (KG-D6 block) during the current year should have been 86.92 mmscmd as per the approved field development plans for D1, D3 and MA fields in this block, which are currently on production. The output has dropped after hitting a peak of about 62 mmscmd in August 2010.
The production has fallen as half of the wells of D1&D3 and a third of those in MA field have shut down due to water loading/sand ingress.
The DGH had stated that after cost disallowance, RIL would be required to pay $114 million in profit to the government for 2012-13 in addition to $103 million that was already due.