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• With the Mukesh Ambani owned Reliance Industries Limited (RIL) having failed to move the Petroleum and Natural Gas Ministry, its Joint Venture partner, British Petroleum took up cudgels on its behalf sending an SOS to the Petroleum and Natural Gas Minister, Jaipal Reddy seeking "immediate approvals’’ for the exploring the “full potential’’ of KG D6 block.In a letter to Mr. Reddy, the Britain-based BP Plc CEO, Bob Dudley has stated that only four months weather window is available in Bay of Bengal for exploration job, to access potential satellite discoveries in the block and draw a blue print of development. “As I said during our meeting in Doha recently, I am deeply concerned that unless we get approvals and permits to begin these sea-bed surveys this December, we will lose a year in our goal of bringing materially new amounts of gas to the Indian market,’’ he said in a letter to Mr. Reddy last month. He sought to invoke his meeting with Mr. Reddy on the sidelines of the World Petroleum Congress in Doha last month.

• Incidentally, RIL's $1.529 billion plan to develop four satellite fields surrounding the currently producing D1&D3 fields in KG-D6 block is awaiting approval of the Petroleum Ministry. "Upon my return, I had my team re-visit the PSC and they advise me that it is their firm view that these sea-bed survey activities are covered by Article 10.7 of the KG-D6 Production Sharing Contract (PSC) as necessary and sound Petroleum Operations for a field development plan,’’ he wrote in his letter.Both RIL and BP have been seeking approval of the Ministry to approve $73 million cost of undertaking pre-engineering works including sub-sea survey on the satellite fields. Of this $30 million is the cost attached to the four satellite fields whose development plan is pending approval with the oil ministry. ``I look forward to your support in this matter so that we can start immediate work in the KG-D6 block which will help increase Indian gas production. We stand ready to work with all those concerned so that we may get to work now to fully exploit and develop the potential of the KG-D6 block,’’ it said.

• In fact, Sasi Mukundan, country head of BP group of companies had also on December 16, written to Mr. Reddy submitting material in support of their view that sea-bed surveys and front end engineering and design (FEED) studies for KG-D6 block were consistent and in compliance with the KG-D6 PSC. ``We re-visited the applicable PSC provisions and it is our firm belief that the sea-bed surveys and FEED studies are covered by Article 10.7 as necessary and sound Petroleum Operations for a field development plan (FDP). Furthermore, these activities are also cost recoverable as necessary other activities for the conduct of proper Petroleum Operations under Section 3.3 of the PSC Accounting Procedure,’’ Mr. Mukundan wrote.“If we are unable to start work this month, we will lose a year in our goal of bringing materially new amounts of gas to the India market. As always, I am thankful for your time and look forward to your support in this matter,’’ the letter concludes.

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