Government slaps $1.5 bn penalty on RIL for drawing ONGC’s gas in KG basin

444444444444444.jpg

A man walks past an advertisement of Reliance Industries Limited at a construction site in Mumbai.

The government on Friday sought $1.5 billion from Reliance Industries as penalty for using the migrated gas from the block of state-run Oil and Natural Gas Corporation (ONGC) in the Krishna-Godavari basin off the Andhra pradesh coast.

Oil ministry has given Reliance Industries and partners 30 days to respond to the penalty notice

Shares of Reliance Industries were down 1.28 per cent to Rs 1012.30 at 1:20 pm.

In a report by Justice AP Shah committee, it found the operators guilty and recommended the compensation on RIL and its partners for “unjust benefit” received through migration of gas. Reports suggest that the government is set to come out with a notification in this regard by the end of this week.

International consultant DeGolyer & MacNaughton said in a report that 11.125 billion cubic meters of gas migrated during the six years to March 31, 2015, from ONGC’s two blocks in Krishna Godavari basin, off the country’s east cost, to the one operated by Reliance.

Read more….

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s