Upstream oil and gas regulator Directorate General of Hydrocarbons (DGH) has called a meeting of Reliance Industries Ltd (RIL) and London-based Hardy Oil and Gas to discuss the Krishna-Godavari basin gas reserves claim made by the latter last week.
The D-3 field may hold as much as 9.5 trillion cubic feet (Tcf) of gas, while the D-9 field may hold 10.8 Tcf, Hardy Oil announced on May 27, citing a technical evaluation by consultant Gaffney, Cline & Associates Ltd. RIL is the operator in these two blocks, while Hardy Oil is a partner with 10 per cent stake.
“DGH will study and evaluate the potential reserves in the block and make a formal comment. DGH has called a meeting of Hardy Oil and RIL officials tomorrow to address this issue,” a DGH official said.
In a letter dated May 29, 2009 to stock market regulator Securities and Exchange Board of India (Sebi), DGH had said that a potential discovery is declared as a commercial discovery only after the technical data is examined and verified by the upstream regulator, DGH.
Therefore, “...the announcement by Hardy Oil and Gas regarding discovery of gas in D1 and D3 blocks of
RIL in the Krishna-Godavari basin is against established norms and procedures,” it said in the letter.
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Hardy Oil’s announcement is “...indicative of a dubious attempt to influence the share market sentiments in their favour,” Director General of Hydrocarbons V K Sibal said in the letter.
Sibal has also requested Sebi to take up the issue with the London Stock Exchange, where Hardy Oil is listed.