Q&A: P M S Prasad, RIL

'We have to first identify D6 problem'

Reliance Industries Ltd (RIL) has seen gas production from its largest field, the D6, off the east coast, stagnating around 54 million standard cubic metres a day for the past few months. In a telephonic interview from London, RIL director and head of the petroleum business, P M S Prasad, tells Jyoti Mukul that a ramp-up will happen over a period of time. Edited Excerpts:

BP has joined hands with RIL at a time the company has encountered technical problems in D6. How far will the tie-up help RIL?
BP brings with it tremendous knowledge and experience in sub-surface and reservoir management. It has worked in diverse geology across the world and has technology, people and tools. In the oil and gas sector, everything happens over a period of time. The problem (in D6) has to be identified first.

Will this tie-up go beyond India and will RIL partner with BP in its assets overseas?
At the moment, the focus is on India, but there is nothing to say that it cannot happen over a period of time.

Did RIL need BP technology more than its investment?
RIL has access to cash. BP will bring in expertise.

India’s two fields, D6 and Mangala, have contributed in attracting huge investments. Do you think the perception that India is not a very prospective country has changed?
The perception has changed. Two major productions — one in deep water belonging to RIL and Niko and the other onshore belonging to Cairn and ONGC have attracted huge investments. The country has been looking for global oil majors for some time. The effort has fructified. I think it is good for the country. When an oil major comes into the country, it makes available its knowledge. Besides, India offers a big market. The per capita energy consumption is increasing and that offers an opportunity for investment.

How attractive is the demographic advantage since prices are controlled by the government?
Price controls are there but this is something we hope the government will address in future.