Reliance not to enhance capex in D1 and D3

{image-RIL70 70_18032008.jpg news.oneindia.in}New Delhi, Mar 18: The government today said there is no proposal from Reliance Energy to enhance the capital expenditure for the approved development plan for D1 and D3 oil and gas discoveries in Krishna -Godavari basin involving estimated expenditure of 8.83 billion dollars which has already been received. However, on August 18, 2007, the operator has submitted a fresh development plan for MA oil and gas discovery in the same block.

As per the estimates submitted by the operator, the development plan for MA oil and gas discovery is expected to increase the government revenues from earlier approved development plan of D-6 Block by approximately 1.6 billion (discounted by 10 per cent) from the revenue generated after recovery of contract costs on the basis of certain assumptions. The commercial production from D-6 block is expected to begin in mid-2008, Minister of State for Petroleum Dinshaw Patel said in a written reply to the Rajya Sabha.

UNI