Larger panel to validate RIL's FDP mooted

The Directorate-General of Hydrocarbons (DGH) has rejected the international panel agencies for “third party validation” of the capex of Reliance Industries' $1,529 million field development plan (FDP) for four satellite gas discoveries in KG-DWN-98/3 on the grounds of “conflict of interest”. In a latest order issued by the Petroleum and Natural Gas Ministry (Exploration Division) Under Secretary, K. K. Sharma, the Ministry has asked the DGH to prepare a larger panel of agencies so that the panel would be useful in future also. During a meeting held in September 30, 2011, the DGH decided to engage a “third party validation” of capex of optimised field development plan of the four satellite discoveries — D-2, D-6, D-19 and D-22 in block KG-DWN-98/3. Bids for the same were invited in November by the DGH and four agencies — Pangea Inc, Russia; Fugro Robertson Limited, U.K.; Gaffney Cline and Associate, U.K.; and RPS Energy, U.K. — were empanelled. However, only two bids — Gaffney Cline and Associates and Fugro Robertson Limited — submitted bids on November 23, 2011. However, DGH did not accept both the bids. It found that Gaffney Cline and Associates had “conflict of interest” because the latter had carried out reserves estimation for Kg-DWN-98/3 in 2005 and 2006. Furgo Robertson did not submit earnest money.