RIL, Cairn India can explore production fields: Veerappa Moily
- âBalaatkariyon ke liye Netaji ka mann ekdum mulayam haiâ
- Ramdev âgoes liveâ on poll funding, Congress hits BJP on black money
- Narendra Modi sent emissaries to open talks on Kashmir: Geelani
- After denying a 'Modi wave', Joshi endorses Modi as India's next PM
- Probe Ajit Pawar tape âthreateningâ to cut water supply: EC tells Pune collector
RIL and Cairn have maintained that exploration being a continuous process is allowed in the mining lease under which they currently produce gas from eastern offshore and Rajasthan blocks respectively.
They felt the 'ring-fencing' proposed by DGH and seconded by the Oil Ministry was not practical and legal.
While RIL has proposed to drill an exploration well on the flagging D1&D3 gas fields in the KG-D6 block to study reservoir characteristic, Cairn wants to drill new probes to help raise output from the Rajasthan block to 300,000 barrels per day (bpd) from 175,000 bpd.
Globally, exploration is permitted in fields that are under production so as to keep adding new reserves to replenish ones that have been produced. In absence of rejuvenation, the fields will terminally decline from the day output starts.
The same has been followed in fields in Assam and Mumbai offshore.
Stocks More on Cairn India
Company INFO More on Reliance Industries