KG basin output to be doubled, capex to go up

New Delhi, Dec 12: The Reliance Industries Ltd led consortium, which is developing the Krishna Godavari basin Dhirubhai-1 and 3 Block, will increase its output from 40 MMSCMD of gas to 80 MMSCMD by increasing its expenditure four times from 2.47 billion dollars to 8.84 billion dollars, the Rajya Sabha was informed today.

The Reliance Industries led consortium has obtained government approval to make capital expenditure of 2.47 billion dollars to develop the basin, Minister of State for Petroleum Dinshaw Patel said in a written reply to the Upper House.

Mr Patel said the consortium has submitted addendum to the development plan to increase the production from 40 MMSCMD to 80 MMSCMD, with an increase in expenditure from 2.47 billion dollars to 8.84 billion dollars. This is a huge 400 per cent increase in rupee terms increasing from Rs 11,500 crore to Rs 41,550 crore.

The question was raised by SP member Amar Singh.

UNI