'Reliance Industries not allowing audit'
The Oil Ministry has informed the Prime Minister's Office (PMO) that it has not given final nod to Reliance Industries' plans to raise natural gas output from the flagging KG-D6 fields as the firm has refused to allow audit of its expenditure by CAG.
Oil Secretary G C Chaturvedi told a meeting convened by Pulok Chatterji, Principal Secretary to the Prime Minister, on September 24 that KG-D6 block oversight committee - headed by DGH with representative of the ministry - has agreed to all the development proposals made by RIL, sources said here.
Chaturvedi, they said, told the meeting that finalisation of the decisions is however pending due to RIL's refusal to allow second round of audit by the Comptroller and Auditor General of India (CAG) of its spending on the eastern offshore KG-D6 block.
While the Management Committee of KG-D6 block in August agreed to approval of capital spending plans pending for past three years, the resolution has so far not been signed. Also, at least three discoveries RIL has made in the block have so far not been declared commercial, a step necessary to begin production from them.
Besides, it had approved the revised field development plan for MA oil and gas field in the same block in August but formal orders have not been issued. All these investments, RIL says, are necessary to reverse drop in output at the fields.
Sources said Chaturvedi apprised the PMO of the status of production in the KG-DWN-98/3 or KG-D6 block and contractual issues related to
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