Average gas production from the Reliance Industries (RIL) operated Krishna-Godavari (KG) Basin, has fallen short of the expected volume.

Giving this information in a written reply in the Rajya Sabha, Minister of Petroleum and Natural Gas, M. Veerappa Moily said, the average gas production from KG-D6 block during April to October, 2012 was about 30 Million Standard Cubic Meter Per Day (MMSCMD) as against 86.73 MMSCMD approved in the Field Development Plans.

This is mainly due to water loading and sand ingress in well bores and substantial variance in reservoir behaviour. The Minister said the government has not accepted the RIL's (Q,N,C,F)* explanation and have ordered proportionate disallowance of cost of production facilities amounting to over one billion dollar. RIL initiated arbitration and the government has also appointed an arbitrator in the matter.