Reliance puts off gas bid on bidders request

New Delhi: Reliance Industries has put off bidding for the new gas it plans to produce from eastern offshore KG-D6 block to next month following a request from potential bidders, sources said.

Reliance and its partner BP Plc of the UK, last month had put out Notice Inviting Offer (NIO) seeking bids from potential users for the 5 million standard cubic meters per day of natural gas they plan to produce from the R-Cluster Field in KG-D6 block from the second quarter of 2020. The bidding was to happen on October 11, according to the bid document.

However, the bidding has been postponed based on requests of some bidders given the holiday/festival period during October, sources said adding that bidding will now happen on November 6.

Bidders have been asked to quote a price (expressed as a percentage of the dated Brent crude oil rate), supply period and the volume of gas required. Dated Brent means the average of published Brent prices for three calendar months immediately preceding the relevant contract month in which gas supplies are made.

Reliance set a floor or minimum quote of 9 per cent of dated Brent price -- which means bidders would have to quote 9 or a higher percentage for seeking gas supplies.