Dasgupta seeks termination of contract with RIL on KG-D6 block

CPI leader Gurudas Dasgupta today urged Prime Minister Manmohan Singh to initiate proceedings to terminate the profit-sharing contract (PSC) with RIL on the KG-D6 block, accusing the private firm of "wilful default".

"I would request you to direct the Petroleum Ministry to begin proceedings for termination of the KG-D6 block for wilful default by RIL and taking over the block by the government," Dasgupta said in a letter to the Prime Minister.

Quoting a recent resolution of the management committee for the block, he alleged that RIL had been "in wilful default of the PSC for more than three years. In the meanwhile, (gas) production has fallen to an abysmal level of 9 mmscmd (million metric standard cubic metre per day) against the approved level of 80 mmscmd, a shortfall of almost 90 per cent".

He also claimed that the private oil major had "refused to drill wells as directed by the government to shore up production and are putting forth a false alibi of fall in reserves".

"In view of these circumstances, the only alternative available with the government is to terminate the contract as per Article 30 of the PSC forthwith in view of persistent default by RIL."

Dasgupta said the technical analysis done by the Directorate General of Hydrocarbons has concluded that drilling was carried out in "a very narrow area", deepening of the wells to greater depths was not carried out and RIL's contention regarding fall in reservoir estimates was "incorrect".

Rejecting Petroleum Minister M Veerappa Moily's reported suggestion to appoint a global consultant for reassessment of recoverable gas reserves, the CPI leader said this statement was "at complete variance with the decision of the officials in the management committee meeting".

"It appears that the Petroleum Minister has made it a habit to overrule the senior officers of his ministry," he added.