GAIL-Ravva Consortium (ONGCL, Cairn Energy, Videocon Petroleum, Ravva Oil) agree Price Revision

Gail India Ltd has announced that the Company and Ravva JV have agreed to a price revision for the gas supply from Ravva field in the KG Bain as provided in the Gas Supply Contract (GSC), executed in 1997. The GSC has a validity period till 2019. The revised ceiling price has been agreed as USD 3.5/MMbtu based on good faith negotiations as provided in the GSC. The revision was formally executed by means of a Side letter to GSC on July 18, 2006 between the Company and Ravva Consortium partners; ONGCL, Cairn Energy (Operator), Videocon Petroleum Ltd. and Ravva Oil (Singapore) Pty Ltd. The GSC envisages gas supply of about 1.0 MMSCMD and is being predominantly supplied to power and fertilizer Companies in Andhra Pradesh under APM regime.

Source : Equity Bulls

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