Reliance Inds asked to surrender 4 oil blocks

The government has asked Reliance Industries Ltd to surrender four oil and gas blocks for not adhering to the minimum work programme committed while acquiring the blocks, said a senior oil ministry official.

Three of these blocks are in the Krishna-Godavari Basin and one is in Gulf of Kutch in Gujarat, he added.

"These blocks had been awarded to Reliance in the first round of New exploration and Licensing Policy. We've asked them to relinquish these blocks in line with our new extension policy," the official said.

The government will also ask Reliance to pay penalty for failure to carry out the minimum work programme promised at the time of bidding for the four blocks, the official said.

"The directorate general of hydrocarbons is working on the numbers (the quantum of penalty). Soon, a letter will be send to Reliance on this," the official said.

Reliance had already been given an extension of 18 months, as permissible under the production-sharing contract, to carry out the committed work programme. However, the company wanted more time relating to drilling of wells and seismic surveys.

The three offshore KG-basin blocks are KG-OSN-97/2, KG-OSN-97/3, and KG-OSN-97/4. The Gujarat offshore block is GK-OSN-97/1.

According to the new extension policy, if the contractor does not fulfill the work programme within the stipulated period or extended period, it'll have to surrender the blocks and pay the government for the unfinished work.