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Govt gets $510,000 as profit share from crude production

Monday, July 27, 2009 (20:16:30) Tags: business, petroleum, crude oil , natural gas New Delhi: The government has received $510,000 as its share of profit petroleum on commercial production of the Krishna-Godavari (KG) block crude oil for seven months, it said today. In a written reply tabled in the Rajya Sabha, Petroleum and Natural Gas Minister Murli Deora said that the government received $510,000 for the period between September 2008 to March 2009. Profit petroleum is non-tax revenue receivable by the central government out of the profit generated from production of crude oil and natural gas from the fields it has awarded under a production sharing contract. Deora told the house that Reliance Industries Ltd and Niko Resources had invested $5.98 billion till March 2009 on two major natural gas discoveries and one crude oil discovery. Deora said the natural gas production from the KG-DWN-98/3 block is about 31 million metric standard cubic metres per day (mmscmd), which accounts for 25 percent of total natural gas production of the country. The production in the block is currently 13,500 barrels per day, which is about 1.9 percent of the total crude oil production of the country.(IANS)