India’s upstream regulator the Directorate General of Hydrocarbons (DGH) is refusing to recognize three gas discoveries made by India’s state-run Oil & Natural Gas Corporation (ONGC).
ONGC didn’t provide the DGH with required surface flow and drill stem test data for the D, E and UD-1 discoveries in the block, the Indian newspaper The Press Trust of India (PTI) said Tuesday.
The discoveries were made in the Krishna Godavari block KG-DWN-98/2 (KG-D5), in the Bay of Bengal on India’s eastern coast.
UD-1 has an estimated reserve of 2.8 trillion cubic feet of in place natural gas.
The D and E discoveries have estimated combined reserves of 587.6 billion cubic feet.
This isn’t the first time the DGH has refused to recognize discoveries.
In 2013, the regulatory agency rejected investment plans for eight discoveries worth $10 billion made by India-based Reliance Industries.
DGH claimed Reliance hadn’t performed the prescribed tests and didn’t grant the company extra time to perform them.
India’s Oil Ministry is appealing to the country’s Cabinet for an extension of the prescribed testing timeline so Reliance can retain its discoveries.
The ministry is concerned that taking and rebidding the discoveries could cause development delays and prompt legal challenges from operators.
ONGC is hoping that its receives similar concessions and timeline extensions, PTI said.