Date:22/07/2006 URL: http://www.thehindubusinessline.com/2006/07/22/stories/2006072203150200.htm

GAIL-Ravva group agree on price revision

Our Bureau

New Delhi, July 21

GAIL (India) Ltd and Ravva joint venture partners (ONGC, Cairn Energy, Videocon Petroleum, and Ravva Oil) have agreed to a price revision for the gas supply from Ravva field in the KG Basin as provided in the gas supply contract (GSC), executed in 1997. The GSC has a validity period till 2019. According to a statement issued by GAIL, the revised ceiling price has been agreed as $ 3.5 per million British thermal unit (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 between GAIL and Ravva consortium partners - ONGC, Cairn Energy (operator), Videocon Petroleum Ltd and Ravva Oil (Singapore) Pty Ltd.

The contract envisages gas supply of about 1.0 million standard cubic metre per day (MMSCMD) and is being predominantly supplied to power and fertiliser companies in Andhra Pradesh under administered pricing mechanism regime.