Pricing of KG-D6 gas: Even as BP Board meets in India, company reiterates demand for market determined pricing

May 15The fact that the entire BP Board, including Chairman Carl Henric Svanberg and CEO Bob Dudley, has decided to have a meeting means that India figures prominently in the company's scheme of things.
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But even as the Board meets, the company continues to remained concerned about the pricing of gas.
 
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This is evident from the fact that Dudley has shot off a letter to the petroleum ministry reiterating the demand for an "arms-length market determined" pricing of gas from the block from April 2014 onwards.
 
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He has also sought cooperation from the petroleum ministry as RIL-BP moves in with what is dubbed as the "next wave of projects". The $ 5 billion programme consists of drilling additional wells and installing a compressor, to raise output from the block. 
 
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The RIL-BP duo, jointly managing the KG-D6 block, have previously said that the next gamut of investments would be dependent on policy reforms in the pricing of gas from the block. 
 
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Lobbying for an early decision on the issue, Dudley said that the projects which have been envisaged under the plan, need to be approved in 2013 itself because of limited weather windows. In view of this, an early commitment by the government for market determined pricing would be mutually beneficial, Dudley said.
 
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Dudley has also claimed that the proposed revamp of the block would save the country a massive $50 billion in LNG imports. 
 
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Output from the block hovers at 15.5 mmscmd as compared to 80 mmscmd in the Field Development Plan (FDP) submitted by the operator, RIL.