Industry & Economy
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Petroleum
DGH issues notices to RIL, Niko
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Revised Block D6 reserve assessment
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New Delhi
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June 30
The Directorate-General of Hydrocarbons — the upstream petroleum regulator — has issued notices to both Reliance Industries Ltd and Niko Resources of Canada seeking an explanation on how they arrived at the increased gas reserve assessment of 35.4 trillion cubic feet (TCF) for Block D6.
"The proven reserves in the Block are 5.7 TCF and the gross in-place reserves stand at 11.9 TCF. We have sought an explanation on how they arrived at the increased figure," Mr V.K. Sibal, Director-General of Hydrocarbons (DGH), told reports at the sidelines of a news conference here.
He said RIL and Niko have been given 15 days to respond on how they arrived at the 35.4 TCF figure. The notice also seeks to know how Block D6 data was given to Gaffney, Cline and Associates for assessment of reserves when as per Production Sharing Contract, the permission of DGH had to be obtained for sending out any data.
"Neither Reliance nor Niko followed the Production Sharing Contract (PSC) norms and so we have sent notices seeking an explanation," he said.
Toronto exchange
The DGH has also written to Toronto Stock Exchange, where Niko Resources is listed, stating that the reserve announcement was not in line with the PSC and suitable action be taken against the company.
"The gas field belongs to Government of India and profit from exploration in the block is shared with the operator in kind. So, they cannot resort to declaration of reserves or sending out data without our permission," he said.
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