Group of Ministers decide to maintain 'status quo' on oil supplies, despite reduced output

New Delhi, Feb 25 (ANI): Empowered Group of Ministers (EGoM) took stock of the sharp decline in gas production but failed to arrive at a decision to boost supplies following a high-level meeting here late evening.

India's gas production has tumbled due to a fall in output from the Krishna-Godavari D6 field operated by Reliance. Output from the block had begun to decline as Reliance drilled fewer wells than planned and six wells ceased to produce due to the entry of sand or water.

Gas output from the D6 block, located off India's east coast, may be 66 percent lower than initial estimates from April 2012, government sources said recently.o consider the development, several cabinet ministers, including Oil Minister, Jaipal Reddy, Finance Minister Pranab Mukherjee, Law Minister Salman Khurshid and Power Minister Sushil Kumar Shinde attended the meeting.

Following the talks, Reddy said that as EGoM was yet to make its decision, the status quo on the situation would be maintained.

"We all came to the conclusion that there is not much gas to be diverted even from non-NELP (New Exploration Licensing Policy). So, therefore, EGoM decided that things had better be left, in regard to non-NELP sources, to the Ministry. It has not taken any view. It has taken, in a way, it has taken a kind of view, on the situation," said Reddy.

Reddy further said that no new decision had been taken at the meeting, while dismissing reports of a possible hike in diesel prices following the ongoing assembly elections in five states.

"This meeting has been called to take stock of the situation. No new decisions have been taken," he added. (ANI)