RIL-BP to invest USD 6 bn in developing new gas fields

Industries and its partner BP plc today announced investment of USD 6 billion in developing new gas fields in the KG-D6 block after an eight- year hiatus.
1mg CPA IN
chairman Ambani said two firms have also agreed on a strategic cooperation on new opportunities for conventional and unconventional fuel trading and marketing including jointly setting up petrol pumps.

He said BP-has agreed to progress on R-Series gas field development in the KG-D6 block and will invest USD 6 billion. The gas project will reduce India’s import dependence by 10 per cent.

Addressing a joint press conference, Ambani said RIL-BP after many years will invest Rs 40,000 crore to bring 30-35 mmscmd of gas.

This “new and historic cooperation” will also explore trading of fuel and carbon emission trading, he said.

With regard to pending arbitration, Ambani said will follow legal course for bringing them to conclusion.

“We don’t see pending arbitration hampering our new investments,” he added

is locked in four arbitration cases with the government. It is in arbitration against the government disallowing recovery of certain KG-D6 gas field costs as a punishment for gas output lagging targets.

Another arbitration is over deferring of a natural gas price hike due to the company from April 1, 2014. The latest arbitration is against government demanding USD 1.55 billion compensation from and its partners for “unfairly” producing ONGC’s gas.

source: Business Standard / June 15, 2017

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s