Reliance Industries, BP to submit plan for the D6 block

Reliance Industries, BP to submit plan for the D6 blockReliance Industries and BP are planning to submit a new field development plan for the entire D6 block by the month of June.

The new plan is aimed at increasing the output and cut costs and revive the tough relationship between the company and the Indian authorities. The new field development plan (FDP) will be in place of an existing one that is only meant for a segment.

The new plan will allow the companies to reduce costs, as they will be able to make sure that all the existing facilities are fully utilized and same facilities can be sued for various blocks, avoiding building additional infrastructure.

The increased production from the field will bring some relief to the customers, who are facing a severe shortage and also allow government, which is concerned over decline in output. The production from the block has fallen below 40 million metric standard cubic metres a day from 60 mmscmd.

The government says that the company is to blame for the fall in production but Relaince says that geological complexities caused the fall in production. The new plan would aim to give a new direction to the companies and will address concerns raised by the government.