After warning that eastern offshore KG-D6 gas fields will stop producing in 2015 unless the government approves investments needed to keep the nation's largest gas fields alive, RIL partner British Petroleum (BP) subsidization has led to artificially depressed gas prices. In fact, it feels the gas price is not remunerative enough for investments in India.
KG-D6 output has dropped to below 30 million standard cubic metres per day (mmscmd) and is projected to further fall to 20 mmscmd by next year. We can discover less gas at KG-D6 given artificial depressed rate, a BP official told CNBC-TV18.
BP says the government should target subsidies directly to consumers.
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