RIL's KG gas to flow by Oct-end: Oil secy

Reliance Industries (RIL), the country’s largest company by market capitalisation, is likely to begin producing gas from its D6 block in the Krishna-Godavari basin from October-end, Petroleum Secretary RS Pandey said today.

“There is some delay because of technical reasons. I am told they will start gas production by October-end,” Pandey told reporters today. The government had previously said that RIL was expected to begin production from two areas – Dhirubhai 1 and Dhirubhai 3 – in the D6 block from September.

Initially, RIL said production would begin in June. The two areas hold gas reserves of around 11.3 trillion cubic feet.

Besides technical reasons – the company has not been able to finish work on the production wells and onshore gas processing terminal – RIL has not been able to sign gas supply agreements with buyers. The Mukesh ambani-promoted company is fighting a battle in the Bombay High Court with the Anil Dhirubhai Ambani group company Reliance Natural Resources over supply of gas from the field. The court has prohibited RIL from entering into any contract for sale of the gas from the block, in which it discovered gas in 2002.

Not to offload stake

The company today also said it would not offload 80 per cent stake in the block to four wholly owned subsidiaries as it had already been able to raise the funds needed for the completion of the project.