Reliance CBM extension

Vol 15, PW 26 (12 Jul 12) News in Brief

Reliance has once again asked the oil ministry to forgive and forget a two-year delay to CBM production from its 500-sq km SP (West)-CBM-2001/1 or Sohagpur West and 495-sq km SP (East)-CBM-2001/1 or Sohagpur East blocks.

Reliance was to begin producing gas by April 29, 2007. But a delayed PML from the Madhya Pradesh state government forced it to postpone first production at Sohagpur East to October 26, 2009, and at Sohagpur West it was delayed until December 2, 2009.

Ministry officials rejected Reliance’s ‘excusable delay’ request last December, saying there is no provision in the contract to extend the development phase. Reliance president (CBM) Jayant Parimal pressed its case again on June 22 by writing to ministry joint secretary exploration Aramane Girdhar.

“We could not under law carry out development operations without the PML,” wrote Reliance. Across both blocks, Reliance has 60 wells each ready to produce 10,000 cm/d of gas.