Reliance Industries has asked its partner Niko Resources to withdraw from eastern offshore KG-D6 gas block over default in payments for field development cost, but the Canadian firm has sought to stall the move by invoking arbitration, the companies said.
The government has approved Reliance Industries and British energy giant BP plc acquiring their cash-strapped partner Niko Resources’ 10% stake in gas discovery block NEC-25 in the Bay of Bengal.
Mukesh Ambani-led Reliance Industries and its partners, BP and Niko Resources, have so far paid only $82 million to the gas pool account
The government has slapped additional penalty of USD 264 million (about Rs 1,700 crore) on RIL and its partners for producing less than the targeted natural gas from the KG basin block in 2015-16.
Niko Resources of Canada is in the process of selling its 10 per cent participating interest in Reliance Industries Ltd (RIL)’s gas discovery in block NEC-25 off Odisha coast to RIL and BP plc.