GAIL-Ravva consortium agree price revision at US$ 3.5/MBTU

Mumbai, July 21 (UNI) The state-owned gas transporter, GAIL India and Ravva JV Consortium have agreed to a price revision for the gas supply from Ravva field in the KG Bain as provided in the Gas Supply Contract (GSC).

Accordingly, GAIL informed BSE that the revised ceiling price has been agreed at US$ 3.5/MBTU (Million British Thermal Unit) based on good faith negotiations as provided in the GSC, which was executed in 1997 and it has a validity period till 2019.

The revision was formally executed by means of a Side letter to GSC on July 18, 2006 between the Company and Ravva Consortium partners such as ONGC, Cairn Energy (Operator), Videocon Petroleum Ltd and Ravva Oil (Singapore) Pty Ltd.

The GSC envisages gas supply of about 1.0 MMSCMD (million metric standard cubic metres a day) and is being predominantly supplied to power and fertilizer Companies in Andhra Pradesh under APM regime.

UNI SN GB SKB1826