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July 24, 2007 15:43 IST
Reliance Industries [Get Quote] Chairman Mukesh Ambani is believed to have told top government officials on Tuesday that his company's cost of developing the Krishna Godavari deep-sea gas find was lowest in the world that can be validated through independent experts.
With pricing of natural gas from the KG-D6 block stuck, Ambani made the second trip this month to meet top officials, including Principal Secretary of Prime Minister T K A Nair, and officials in ministries of finance and fertiliser and Planning Commission.
While company officials were tight-lipped about the visit, sources said Ambani gave rational for pricing gas from KG-D6 block at 4.33 dollars per million British thermal unit.
Ambani is understood to have told officials said RIL's proposed investment of 5.2 billion dollar in developing two gas fields in the block was most competitive in the world and lower than similar deep-sea projects worldwide.
The finding and development cost of KG-D6 at $4.98 per barrel of oil equivalent was lower than Exxon Mobil's 5.75 dollars per boe F&D cost for Kizomba field, Chevron's $7.2 dollars per boe cost for Frade field, Shell's $9 per boe cost for Perdido field and $11.73 per boe for BHP Billiton's Shenzi field.
Ambani pointed out that RIL was guaranteed free market regime when it bid for areas offered under New Exploration Licensing Policy and attempts to regulate prices would be against the contract, sources said.
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