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Niko Resources, in its annual general meeting presentation stated that "planned development projects in India dependent on acceptable gas pricing.
In addition to its Krishna Godavari basin KG-D6 block, RIL and its partners are slated to invest in NEC-25 off the Odisha coast, R-series and satellite discoveries and other blocks.
Niko said final investment decisions to develop R-Series gas fields as well as satellite discoveries in KG-D6 block is "waiting on favourable resolution of gas price."
On Thursday, Sashi Mukundan, Regional President and Head of Country (India), BP Group said: "We are ready to go ahead with our first project which is probably a $4 billion project. We are getting ready to potentially move that forward (but) are waiting for the gas price decision. So is that frustration, yes because it was decided last June 2013."
BP said at the current current $4.2 per mmBtu gas rate, investment is unviable. This May RIL and its partners had field an arbitration seeking market pricing as per terms of D6 Block PSC.
While the previous UPA government had in June 2013, approved a new gas pricing formula, which would have doubled the natural gas rates to $8.4 per million British thermal unit on its implementation from April, 2014, the present government is reviewing it.
A four member panel of secretaries has been formed by the government to suggest a new gas pricing mechanism. The report of the committee is expected in next few days.
