Govt. modifies affidavit in RIL-BP-Niko matter

RIL BP NikoThe government has reportedly made some modifications in the affidavit related to the RIL-BP-Niko oil & gas fields.

While in its earlier affidavit filed on February 20 in the Supreme Court the government quoted its Cabinet Committee on Economic Affairs (CCEA) as having decided to allow contractor (RIL, BP and Niko consortium) to sell the natural gas from its D1/D3 fields at the revised price formula; in the new affidavit that government has used the word 'contractor' instead of 'contractor (RIL, BP and Niko consortium)'.

Simply talking of 'Contractor' without mentioning RIL, BP and Niko hints that the government is now drawing a distinction between RIL, BP and Niko in the new affidavit.

It also hints that the chances of RIL's partners BP and Niko getting a higher price for the gas they are producing from the D1/D3 fields of the KG-D6 block might have taken a hit.

Speaking on the condition of anonymity, an official said, "A call will be taken on RIL's bank guarantee amount for KG-D6 gas after notification of the new price. A decision on participation of Niko and BP in the arbitration process
(initiated by RIL against the government) could be left to the Supreme Court."

The price of domestic natural gas is set to increase from current $4 per million British thermal unit to $8.4 per million British thermal unit from April 1 this year, despite severe criticism of the decision by BJP-led Opposition as well as consumer activists.