RIL surrenders ‘unviable’ blocks to govt
After incurring an expenditure of approximately Rs1,400 crore in unsuccessful exploration, Reliance Industries Ltd (RIL) has surrendered 14 blocks to the government.
According to informed sources, the group had won 45 blocks in the New Exploration Licensing Policy (Nelp) rounds and has surrendered only those found commercially unviable. RIL had invested over Rs13,200 crore in exploring oil and gas and their appraisal in the 45 blocks, but made commercial discoveries only in two blocks — KG-D6 in Krishna Godavari basin and NEC-25 in Mahanadi basin.
Sources add that RIL cannot recover the Rs1,400 crore expenditure it incurred on seismic surveys and drilling wells in the 14 blocks and that would be treated as sunk or lost investment.