Govt asks RIL to surrender 3 K-G

Mumbai, June 28 (UNI) The Union Government has asked Reliance Industries Ltd (RIL) to surrender one basin in the Gulf of Kutch and three basins in the Krishna-Godavari basin.

Stating the reason for the surrender, the official sources said that RIL had failed to make promised investments in the four blocks. Though RIL is likely to surrender the four blocks, penalties would be levied on RIL for the unfulfilled programme.

Surrender of the four blocks is however, economically unfeasible for the company, which will now venture into the retail sector. The government has invited fresh bids on the surrendered blocks.

Earlier, while addressing the companys annual general meeting in Mumbai on Tuesday, RIL Chairmain Mukesh Ambani announced a new crude oil discovery in the Krishna-Godavari basin off the Andhra Pradesh coast.

He said the company recently made a discovery in MA1, well in the deep water D6 block in the K-G basin, and another discoveries in two wells of the KG-III-6 shallow water block.

Mr Ambani had then said that more than the size, the discovery signified a large geological play that could result in future discoveries. He said that the development could well open a significant new play and have a material impact on the future exploration potential of the block.

Fear also looms over RILs plans of implementing one of the largest deep water gas development projects in the world. The plan entailed transportation of gas through a 48-inch 1,400-kilometre long east-coast to west-coast pipeline, traversing the states of Andhra Pradesh, Karnataka, Maharashtra and Gujarat.

The pipeline project was supposed to be implemented through Reliance Gas Transporation Infrastructure Ltd (RGTIL).

UNI SN PM SKB1914