Genesis to do Engg Design for an RIL Field
New Delhi: Reliance Industries has contracted offshore engineering service provider Genesis to undertake front-end engineering design (FEED) for its deep water field in the KG Basin. The contract is for developing the MJ field of KGDWN-98/3 block where Reliance holds 60% participating interest, according to a statement on the Genesis website. BP and Niko hold 30% and 10% interest in the block, respectively. The work will be managed from the Genesis head office in London, it said.
Last year, Reliance Industries had invited expression of interest from contractors for the development of its deep water oil and gas fields. This was done following a shift in the government policy, allowing producers to charge a higher price for gas from deep water and other difficult fields, effectively doubling the price from what is available to normal fields in the country.
Those engaged in gas pricelinked litigation with the government, however, can’t avail higher prices for their produce. Therefore, Reliance and its partners may have to withdraw the gas price arbitration against the government to take advantage of this policy.