RIL, BP ready to drop arbitration over gas prices?
RIL and BP have also signalled their intention to invest $10 billion over the next few years to recover about 2.5 trillion cubic feet of gas from deep sea fields that the combine expects to be allowed to sell at free market prices under the new gas-prices rules.
New Delhi: Is Reliance Industries Ltd (RIL) ready to bury the hatchet with the government over its dispute on natural gas prices, which is now in arbitration? Recent developments suggest so.
RIL and its partner BP Plc. have initiated discussions with the government to drop the arbitration, said an oil ministry official familiar with the developments but did not wish to be identified.
RIL-BP have also signalled their intention to invest $10 billion over the next few years to recover about 2.5 trillion cubic feet (tcf) of gas from deep sea fields that the combine expects to be allowed to sell at free market prices under the new gas-pricing rules, according to the official.
Withdrawal of arbitration is a pre-condition to RIL-BP being allowed free pricing of gas produced from their allotted fields, according to the gas-pricing policy announced by the government on 11 March.
RIL did not respond to an email seeking comment.