RIL (Reliance Industries) and BP Plc, Europe's second biggest oil company, will invest $5 billion in developing untapped gas reserves in the KG-D6 block as the partners attempt to reverse the fall in gas production.
Besides detailing USD 5 billion investment plan over next 3-5 years, BP Chief Executive Bod Dudley and Reliance Industries Chairman Mukesh Ambani in their first joint meeting with the Oil Minister M Veerappa Moily may have also discussed the dispute with CAG over audit of spendings in flagging KG-D6 gas block.
Dudley and Ambani in the meeting that lasted nearly an hour, briefed Moily of plans to develop 4 trillion cubic feet of gas reserves in the KG-D6 where production has dropped to about 19 million standard cubic metres per day, which is less than a third of 62 mmscmd peak hit in 2010.
The duo, flanked by BP India head Sashi Mukundan and RIL Executive Director P M S Prasad, updated Moily of "joint future plans in India, including the KG D6 block enhancement plan designed to increase production from the block", RIL-BP said in a joint statement.
While the investment in the new reserves, that lie in satellite fields surrounding the currently producing Dhirubhai-1 & 3 (D1&D3) gas fields and MA oil and gas field, will take 3-5 years, RIL-BP plan to augment current production next year by upgrading facilities at D1&D3 and MA fields.
"They briefed (me) about their investment plans. I encouraged them to invest more to help in India's energy security," Moily told PTI.
Moily, who was joined by Oil Secretary Vivek Rae at the meeting, assured expeditious decision making.
He, however, refused to say if RIL-BP raised the issue of CAG's second round of audit of KG-D6 spendings.
"You should focus on positive news rather than running after controversies," he remarked when asked if differences between RIL and CAG over the scope of second round of audit were discussed at the meeting.
Moily had apparently come from Bengaluru last night only to attend the breakfast meeting with Dudley-Ambani and was on the way to the airport to return back at non when he was called by Prime Minister Manmohan Singh to attend the luncheon hosted in honour of visiting British Prime Minister.
Leading the largest-ever trade delegation from the UK to any country, British Prime Minister David Cameron said: "BP is already the largest single British investor in India and the decision to join forces with RIL to