Wires

Reliance may shut India's KG D6 gas fields in 2015/16-secy

NEW DELHI, Oct 9 (Reuters) - A Reliance Industriesled consortium may have to shut key gas producing fields in theKG D6 block in 2015/16, India's oil secretary G. C. Chaturvedisaid on Tuesday.

Canadian company Niko Resources has a 10 percentstake in the D6 block in the Krishna Godavari basin, whileReliance and BP , the operators, have 60 percent and 30percent respectively.

Currently, the block is producing 26 million standard cubicmetres a day of gas from the D1 and D3 fields.

In response to a question on whether the consortium mighthave to shut the fields in 2015/16, Chaturvedi said: "That is afear."

The consortium has said it will not be able to produce asmuch gas as anticipated due to geological complexities, theIndian oil ministry says.

The gas block off India's east coast has had an unforeseendecline in output that has left India more reliant on expensiveliquefied natural gas imports. Analysts Morgan Stanley said onMonday the field could be exhausted in five years.

(Reporting by Nidhi Verma; Editing by Jo Winterbottom)

((ratnajyoti.dutta@thomsonreuters.com)(+91 11 41781013)(Reuters Messaging:ratnajyoti.dutta.thomsonreuters.com@reuters.net))

Keywords: INDIA/RELIANCE