An arbitration notice has been filed against the Indian government by the firms operating the country’s biggest natural gas field – KG D6 over gas prices. India’s Reliance Industries, UK oil giant BP and Canada’s Niko operating the KG D6 basin were victorious in securing the approval to nearly double the gas prices.
However, before the country entered the general election phase, the implementation of this move was delayed by the election regulatory authority.
According to the company statement, the delay in implementing the gas prices increase were impacting the firms plan to develop the field. “Without clarity on gas prices hike, the firms “are unable to sanction” planned investments of close to $4bn (£2.4bn) this year,” the statement added.
“In addition, this will also delay the ability of the parties to appraise and develop other significant discoveries made last year.”
The government in 2013 had approved a price of $8 per million metric British thermal units (BTU).
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