RIL, Partners Put Only $82 Mn In Gas Pool Account

RIL, Partners Put Only $82 Mn In Gas Pool Account

Mukesh Ambani-led Reliance Industries and its partners, BP and Niko Resources, have so far paid only $82 million to the gas pool account — maintained to park the differential between the notified gas price given to others and the $4.2 per unit that the three contractors charge their customers.

The firms are yet to pay the penalty imposed on them for disallowing recovery of cost incurred for missing the target during six years from 2010. After a fresh penalty of Rs 264 million in August, the total now stands at $3.02 billion. Fining them, the government had cited their failure to drill the committed number of wells and producing less than the targeted natural gas from the Dhirubhai-1 and 3 fields in the eastern offshore Krishna-Godavari-D6 block. Production was supposed to be 80 million standard cubic metres per day.

The firms have contested the fine. They are of the view that the disallowance of costs incurred by the joint operation has no basis in the production-sharing contract and that there are strong grounds to challenge the government’s position. Read More…


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