RIL wants ADAG’s ‘malicious’ ad campaign nipped in bud

RIL wants ADAG’s ‘malicious’ ad campaign nipped in bud

New Delhi: Terming as ‘malicious, baseless, mischievous and ill-informed´ the advertisement propaganda by Anil Ambani Group on its gas field capex, Reliance Industries has stated that the development cost was the lowest in the world and compares favourably to any other project in India.

RIL president and cheif executive officer (petroleum) P.M.S. Prasad on 20 August wrote to oil secretary R.S. Pandey, saying “certain parties are bent upon holding the country’s price and national interest hostage to their own narrow commercial interests and are stopping at nothing to destroy the reputation of the country."

“It is necessary to nip these malafide endeavours in the bud for the sake of the energy security of the country," wrote Prasad and was a day later appointed to the board of RIL.

He said the capital expenditure for developing Dhirubhai- 1 and 3 fields in KG-D6 block had gone up from $2.47 billion in 2003 to $8.83 billion because of increase in reserves by over 2.5 times, trebling of production facilities, doubling of peak production, increase in number of wells, field life and inflation in equipment and services industry.

“Despite the increase in costs, Goldman Sachs’ study of the major E&P projects across the world verifies that the finding and development costs of about $5 per barrel of oil equivalent are amongst the lowest in the world," he said, listing F&D cost of a host of projects by global majors.