RIL to defer investments in developing newer fields

Reliance Industries will defer investments in developing newer fields like R-Cluster in KG-D6 block if the government does not hike gas prices to make them economically viable to produce.

RIL's Dhirubhai-34, or R-Cluster field, in the flagging KG-D6 block was to produce about 13 million standard cubic metres per day of gas, equivalent to present day output from D1&D3 as well as MA fields, by 2017-18.

Its minority partner Niko Resources said the KG-D6 consortium believes the government has "contravened thec terms of the production sharing contract" by not raising gas prices on the due date of April 1.

"If the expected new price for natural gas sales from the D6 Block in India is not notified by the Government of India, then a significant portion of the contractor group's planned investments in the block are expected to be deferred," it said in its fourth quarter earnings statement.

The new government had last week deferred raising natural gas rates by three months pending comprehensive consultation on a new pricing formula that was approved by the previous UPA government.

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