New Delhi: A Reliance Industries led consortium may have to shut key gas producing fields in the KG D6 block in 2015/16, oil secretary G. C. Chaturvedi said on Tuesday.
Canadian company Niko Resources has a 10% stake in the D6 block in the Krishna Godavari basin, while Reliance and BP, the operators, have 60% and 30% respectively.
Currently, the block is producing 26 million standard cubic metres a day of gas from the D1 and D3 fields.
In response to a question on whether the consortium might have to shut the fields in 2015/16, Chaturvedi said: “That is a fear.”
The consortium has said it will not be able to produce as much gas as anticipated due to geological complexities, the Indian oil ministry says.
The gas block off the east coast has had an unforeseen decline in output that has left India more reliant on expensive liquefied natural gas imports. Analysts Morgan Stanley said on Monday the field could be exhausted in five years. REUTERS