Journalism of Courage
Senior CPI leader Gurudas Dasgupta urged the PM on Friday to initiate steps to terminate the profit-sharing contract governing KG D6 gas block with Reliance Industries Ltd RIL alleging that the company has been in wilful default of the contract for more than three years.
Dasgupta,who had been targeting Petroleum Minister Veerappa Moily alleging that he has been advocating a gas price hike that would benefit the company,on Friday released a draft resolution of the management committee headed by oil regulator DGH.
The block oversight panel,he said,which met on October 1 to consider RILs revised field development plan that slashes recoverable reserves in D1 amp; D3 fields to 3.4 trillion cubic feet from 10.03 Tcf estimated in the original plan of 2006,has concluded that RIL has failed to comply with the requirements of certain articles of the contract so far.
He alleged that RIL had been in wilful default of the PSC for more than three years. Meanwhile,gas production has fallen to an abysmal level of 9 mmscmd million metric standard cubic metre per day against the approved level of 80 mmscmd. They have refused to drill wells as directed by the government to shore up production and are putting forth the false alibi of fall in reserves.
In view of this,the only alternative available is to terminate the contract as per Article 30 of the PSC forthwith8230;.I would request you to direct the Petroleum Ministry to begin proceedings for termination of the KG-D6 block for wilful default by RIL and taking over the block by the government.
