RIL & GSPC – Rs.600,000 Cr/Yr Interest Hoarding Oil & Gas

15022014

February15, 2014

Dear All Political Parties, Activists & Voters,
Here we can see RIL JV partner and Technical collaborator claims 37
Trillion Cubic Feet of Natural Gas in D-6 alone.

This is more than 1 Trillion Cubic Meter at $1 average per cubic cost
to consumers is $Trillion Oil & Gas Reserves in just about 100 Square
kilometer out of 8100 square kilometer block. GSPC also reported
similar Oil & Gas fields called Deen Dyal Oil & Gas Fields in 2005.

There are more discoveries reported around KG Basin itself – that’s
how I arrived at $4 Trillion Discoveries by RIL & GSPC.

Just interest on Hoarded Oil & Gas at 5% on direct claims of RIL &
GSPC of $1 Trillion each and or 2.5% on $4 Trillion indicated value is
$100b Interest or Penalty is Rs.600,000 crores per year. [RIL & GSPC
are operating in KG Basin since 1999]

Here GOI Claims on Hoarding On To over 75 Oil & Gas blocks by RIL &
GSPC are not accounted. Hoarding Penalty of $1 billion per block shall
be $75b annually.

Down stream Production Plants Factories Transport Homes etc are
DEPRIVED of Indigenous & Clean Energy Source.

1250 million people & Consumers can’t be made to suffer due to Delays,
Criminal Misconduct of RIL & GSPC.

Additionally RIL & GSPC should also Compensate India for ROYLTY LOSS.

Ravinder Singh,
Convener, Mentor & CEO
SABKA BHARAT PARTY
Ph: 9650421857, 9718280435
Progressindia008@yahoo.com

ONGC told to pay 2.4k cr a year royalty to Gujarat
TIMES NEWS NETWORK

Ahmedabad: The Oil and Natural Gas Corporation of India Ltd (ONGC)
will have to pay about Rs 200 crore every month – Rs 2,400 crore per
annum – starting this month to Gujarat government towards crude
royalty, as the Supreme Court has asked the oil company to pay royalty
as per pre-discounted rates. While staying a Gujarat high court’s
order of asking ONGC to pay over Rs 9,000 crore to Gujarat towards
crude royalty since 2008, the apex court has not stayed the HC’s order
to ONGC to pay royalty on crude at the pre-discounted rate.

State energy minister Saurabh Patel said that relief from the apex
court is a setback for the Centre and has exposed its tendency to
create roadblocks in Gujarat’s development.

On November 30, the high court asked the Centre to shell out a
huge amount to the state government which was due to it towards
differences in royalty of crude it had extracted since 2008 from the
state’s soil.

As per the Schedule of the Oilfields (Regulation and Development)
Act, 1948, ONGC is bound to pay to state government 20% royalty of the
market value of crude oil it extracts from oil blocks – there are 66
blocks located in Gujarat. ONGC used to pay such royalty to the
Gujarat government but the situation changed from 2004, when the
Centre asked ONGC to provide crude to IOC and other lossmaking PSUs at
a discounted rate.

Since 2004, ONGC started paying royalty on the post-discount rate
instead of the market value of the crude resulting in a big fall
royalty to Gujarat, which often complained before the Centre. Finally,
it moved the Gujarat high court in 2011. Special counsel Aspi Kapadia
contended that ONGC sometimes supplied crude to other PSUs at a
discount that went up to 96%.

KG D6 World Record Loot – Complete Disclosure.

Can you believe following EPC sub-sea network of connecting all
production wells around 20 cost just $400m? How can On Land structures
add up to $9000m?
http://www.offshore-technology.com/projects/bayofbengal/bayofbengal1.html

1. It is most shocking Niko the technology collaborator exploiting KG
D6 has claimed 37 tmc of gas reserves discovered while RIL admits to
only 11 tmc of gas and GOI about 14 tmc.

> Here itself you can see the capital cost comes down to a third in per cubic meter due 5 times more gas reserves than reported around 2003.

2. But most shockingly EPC contract for sub-sea work connected over 18
production wells is just $400m. As I have already reported earlier
P-52 cost just $753m. There is no justification for $9b
capitalization.

3. You can also see 70% of gas was discovered in 2002 itself but
Bechtel management contract and Aker Kvaerner Subsea was awarded
contracts in 2006 and J. Ray MacDormott in 2007 for Control and Riser
Platform. This was largely avoidable since KG D6 D1 and D3 wells are
just 25-30 kilometers from processing station. Management contract to
Bechtel could have awarded in 2001 since RIL or NIKO lacked the
skills.

4. Surely it would require $10b over 20 years to exploit all the gas
and oil recoverable from over 200 wells to be developed, but it was
scandalous to capitalize $9b for 18 wells before delivering first gas
and delaying award of work by five years.

5. Bangladesh pay only a third of Exploration Income than allowed by
India for HUGE reserves when expectedly India was supposed to pay much
less than Bangladesh.

6. Five to six years delay has cost India $200b in equivalent
Petroleum Imports.

7. Even more shockingly Mahanadi and Krishana basins too have reported
equally Significant discoveries therefore SUDDENLY India will have
large gas flows.

8. RIL deliberately delayed KG Basin projects and executed $7b
Reliance Petroleum Refinery from concept to commissioning in three
years that will surely remain shut down forever.

More important disclosures shall follow

Ravinder Singh
August31, 2009

KG-DWN-98/1 (KG-D6), Bay of Bengal, India
http://www.offshore-technology.com/projects/bayofbengal/
Location Bay of Bengal
Area 8,100km²
Block KG-DWN-98/l (KG-D6)
Basin Krishna-Godivari basin
Water Depth 700m (2,297ft) to 1,700m (5,577ft)
Total reserves About 14,000bn cubic feet of gas and about 140m barrels of oil
Total investment About $10bn

The 8,100km² block KG-DWN-98/l (KG-D6) lies in the Krishna-Godivari
basin, Bay of Bengal, on India’s east coast. The seabed slopes sharply
causing water depths to vary between 700m (2,297ft) and 1,700m
(5,577ft). The field is operated by Reliance Industries (90%) on
behalf of Niko Resources (10%). Block reserves have been put at about
14,000bn cubic feet of gas and about 140m barrels of oil.

The first three discoveries (Dhirubhai-1, Dhirubhai-2 and Dhirubhai-3)
have estimated gas reserves of 7-8trn cubic feet. In March 2003, the
deepwater rig Discover 534 discovered Dhirubhai-4, with in-place gas
volumes of 1,700bn standard cubic feet (bcf). And in February 2006,
Reliance announced that it had encountered the thickest hydrocarbon
column to date, the MA-2 well (about 2km from the MA-1 discovery well)
reaching a depth of about 3.6km and penetrating a gross hydrocarbon
column of 194m consisting of 170m of gas/condensate (53° API) and 24m
of oil (42° API).

The project is expected eventually to cost more than $10bn. Production
of crude oil started in September 2008 from the block’s MA field,
while production of gas from the Dhirubhai-1 and Dhirubhai-3 fields is
scheduled to start by late 2008/early 2009. Initial rate of production
from the MA field is about 5,000bpd and is expected to reach its peak
rate of 40,000bpd by about mid-2010, while D1 and D3 are forecast to
reach 2.8bcfd within the first year of operation, although there is
flexibility to raise this to 4.2bcfd.

Development

The work has included development of at least 18 production wells,
with subsea equipment, pipelines, a riser platform and an onshore
terminal. In January 2006, Reliance awarded US-based Bechtel the
overall EPCM contract for the project.

Subsea equipment

This fast-track development has involved one of the biggest and most
complex underwater installation campaigns ever. Aker Kvaerner Subsea
was responsible for the complete subsea production system in a $400m
Engineering, Procurement and Construction (EPC) contract.

Because of the high flowrate potential, the 55t trees have a 127mm and
178mm bore. The subsea contract was based on 19 subsea trees tied into
six six-slot production manifolds weighing 225t each. The longest
tieback is 6.4km. From these manifolds, production flows through
in-field pipelines to the 370t Pipeline End Manifold (PLEM). The
longest manifold tieback is 6.8km. The PLEM has been designed to
accept additional pipeline tie-ins.

The umbilical distribution hub weighs 170t and there are three 110t
(each) subsea distribution assemblies. The 32 lengths of steel-tube
umbilical total 101km and there is also 57km of electric power cable.
Finally, there is a comprehensive subsea control system.

A pair of 10km 24in production lines link the PLEM to a Control and
Riser Platform (CRP) located in 100m of water. Compression facilities
will ease the anticipated reservoir pressures drop two to three years
after start-up. Gas export will use three 24in lines running 25km from
the CRP platform to shore where gas will be routed to the offshore
terminal at Kakinada. The MEG used to prevent hydrates will be
reprocessed in a closed loop in a system provided by Aker Kvaerner.

KG-DWN-98/L (KG-D4) platform jacket

The platform jacket was manufactured as part of an engineering,
procurement, construction, and installation contract by J Ray
McDermott. The 9,015t jacket was built at J Ray’s Morgan City,
Louisiana, fabrication facility, with the piles and topsides being
fabricated at the company’s Jebel Ali facility in the United Arab
Emirates.

At Pascagoula, Mississippi, the jacket and cargo barge were loaded
onto a Fast Transport Vessel (FTV) for a 46-day journey through the
Suez Canal to the marine and fabrication base on Batam Island,
Indonesia.

The jacket and cargo barge were then towed for approximately 12 days to India.
DeepOcean won a $166m contract three-year contract to provide a
multi-purpose subsea support vessel and related services. The REM
Etive has been deployed under a commercial agreement between DeepOcean
and TS Marine to support development.

The Etive is being used for installation, commissioning, and
inspection / maintenance / repair, having two work-class ROVs, crane
capacity, and an active heave compensated winch system.

As of June 2008, Reliance was carrying out conceptual studies for the
development of another eight natural gas discoveries near the D1 and
D3 gas fields. The satellite discoveries are likely to be tied to the
production facilities for D1 and D3, it said.

http://www.dnaindia.com/dnaprint.asp?newsid=1282543
Saturday, August 15, 2009 2:33:00 AM
Niko says D6 reserves up after 2 new finds
Sreejiraj Eluvangal / DNA

Niko Resources, the Canadian partner of Reliance Industries (RIL) in
the prolific D6 gas block in the Krishna-Godavari basin, has reported
an extension of gas finds in the block.

Estimate of gas reserves in the D6 block has varied from the 11
trillion cubic feet (tcf) claimed by Reliance Industries to 14-15 tcf
claimed by government officials, to around 37 tcf of ‘probable’
reserves put out by Niko in 2007.

In its quarterly result statement, Niko said two new wells (AR2 and
AS1) drilled close to the initial well, R1, have raised the size of
the total find in D6. It did not specify the new quantum though.

“The company is currently drilling the BA2 well,” the Canadian company
said in its operational update on the D6 block.

An external spokesperson for RIL did not give any detail, stating that
all such announcements should come from the government.

Reliance and Niko have been waiting for years for clearance of their
development plans for other gas discoveries in the KG and Mahanadi
basins.

In KG D6 block, for example, development plans for nine discoveries
have been lying in the office of Directorate General of Hydrocarbons
for more than a year. Similarly, in the RIL-Niko combine’s other big
find in the Bay of Bengal, the NEC 25 block in Mahanadi basin, the
development plan has been pending clearance for almost two years.

Gas reserves in the Mahanadi NEC 25 block is estimated to be 8.2 tcf
and going by the development plan, the company can produce 40 million
standard cubic metres per day (mmscmd), around half the peak
production rate from KG D6.

Niko said further exploration is on in both KG D6 and Mahanadi blocks.

The statement reaffirmed that the peak target of producing 80 mmscmd
from the two commercialised discoveries in D6 was progressing as per
schedule.

According to it, capacity has already reached 55 mmscmd and contracts
have been signed for selling 43 mmscmd of gas, though only around 36
mmscmd is being taken by customers at present.

The third block, D4 in the Mahanadi basin, has also thrown up several
prospects on which drilling will start in the second half of next
year, the Toronto Stock Exchange listed Niko said. RIL owns 85% of the
block.

http://www.akersolutions.com/Internet/MediaCentre/PressReleases/All/AKPressRelease_1302972.htm
http://www.offshore-technology.com/projects/bayofbengal/
Aker Solutions has delivered a complete subsea production system,
including umbilicals, to the deepwater gas field.

The KG-D6 project was one of the world’s largest subsea contracts ever
awarded, valued at USD 400 million, when it was signed in May 2006.
Scope of supply for the project was a complete 18-well subsea
production system, including 160 kilometres of steel tube umbilicals.

The KG-D6 field is located in the Bay of Bengal, offshore the east
coast of India. The subsea production system is installed in water
depths from 600 to 1200 metres.
http://www.offshore-technology.com/projects/bayofbengal/
KG-DWN-98 /1 (KG-D6), Bay of Bengal, India

The 8,100km² KG-DWN-98 / l (KG-D6) block lies in the Krishna-Godavari
basin of the Bay of Bengal on India’s east coast. The seabed slopes
sharply causing water depths to vary between 700m (2,297ft) and 1,700m
(5,577ft).

The field is operated by Reliance Industries (90%) on behalf of Niko
Resources (10%). Block reserves have been put at 14,000bn cubic feet
of gas and 140m barrels of oil.
The first three discoveries (Dhirubhai-1, Dhirubhai-2 and Dhirubhai-3)
have estimated gas reserves of approximately eight trillion cubic
feet. In March 2003 the deepwater rig Discover 534 discovered
Dhirubhai-4, which has in-place gas volumes of 1,700 billion standard
cubic feet (bcf).

In February 2006 Reliance announced that it had encountered the
thickest hydrocarbon column to date, the MA-2 well (2km from the MA-1
discovery well) reaching a depth of about 3.6km and penetrating a
gross hydrocarbon column of 194m, which consisted of 170m of gas /
condensate (53°API) and 24m of oil (42°API).

The project is expected to eventually cost over $10bn. Production of
crude oil  from the block’s MA field started in September 2008 while
gas production from the Dhirubhai-1 (D1) and Dhirubhai-3 (D3) fields
began in April 2009.

The initial rate of production from the MA field is 5,000bpd and
reached 33,000bpd by May 2010. In July 2010 54 million cubic metres
per day of natural gas was produced from the D1 and D3 fields. By 2011
the oil and gas peak production from KD-D6 is expected to reach
140,000bopd and 2.82 billion cubic feet per day.
KG-D6 contracts
“The 8,100km² block KG-DWN-98/l (KG-D6) lies in the Krishna-Godivari
basin, Bay of Bengal.”

Work at the KG-D6 field included the development of at least 18
production wells, with subsea equipment, pipelines, a riser platform
and an onshore terminal. In January 2006 Reliance awarded the overall
EPCM contract for the project to US-based Bechtel.
This fast-track development involved one of the biggest and most
complex underwater installation campaigns ever. Aker Kvaerner Subsea
was responsible for the complete subsea production system in a $400m
engineering, procurement and construction (EPC) contract.

Because of the high flowrate potential the 55t trees have a 127mm and
178mm bore. The subsea contract was based on 19 subsea trees tied into
six six-slot production manifolds each weighing 225t. The longest
tieback is 6.4km. From these manifolds, production flows through
in-field pipelines to the 370t pipeline end manifold (PLEM). The
longest manifold tieback is 6.8km. The PLEM was designed to accept
additional pipeline tie-ins.

The umbilical distribution hub weighs 170t and there are three 110t
subsea distribution assemblies. The 32 lengths of steel-tube umbilical
total 101km, there is 57km of electric power cable and a comprehensive
subsea control system.
A pair of 10km 24in production lines link the PLEM to a control and
riser platform (CRP) located in 100m of water. Compression facilities
will ease the anticipated reservoir pressures drop up to three years
after start-up. Gas exports will use three 24in lines running 25km
from the CRP platform to shore where the gas will be routed to the
offshore terminal at Kakinada. The MEG used to prevent hydrates will
be reprocessed in a closed loop system provided by Aker Kvaerner.

KG-D4 platform jacket

The platform jacket was manufactured as part of an engineering,
procurement, construction, and installation contract by J Ray
McDermott. The 9,015t jacket was built at J Ray’s fabrication facility
in Morgan City, Louisiana, with the piles and topsides fabricated at
the company’s Jebel Ali facility in the United Arab Emirates.

The jacket and cargo barge were loaded onto a fast transport vessel
(FTV) at Pascagoula, Mississippi, for a 46-day journey through the
Suez Canal to the marine and fabrication base on Batam Island,
Indonesia. The jacket and cargo barge were then towed for
approximately 12 days to India.

“By 2011 KD-D6′s oil and gas peak production is expected to reach
140,000bopd and 2.82 billion cubic feet per day.”

DeepOcean won a $166m three-year contract to provide a multipurpose
subsea support vessel and related services. REM Etive was deployed
under a commercial agreement between DeepOcean and TS Marine to
support development.

The vessel is being used for installation, commissioning and
inspection / maintenance / repairs and is equipped with two work-class
ROVs, crane capacity and an active heave compensated winch system.

In June 2008 Reliance began conceptual studies for the development of
another nine natural gas discoveries near the D1 and D3 gas fields.
The satellite discoveries are likely to be tied to the production
facilities for D1 and D3.

In December 2009 a development plan for four satellite discoveries was
submitted to the government. A development plan for all the
discoveries made in the block is being conceptualised.