The Directorate General of Hydrocarbons (DGH) wrote to the home ministry that Reliance Industries (RIL) failed to perform its obligations in terms of international petroleum industry practices towards the Krishna Godavari gas block.
DGH wrote this in a reply to the letter sent by the home ministry seeking details of the violation of contractual obligation by RIL with regard to the KG-D6 gas block.
The home ministry wants these details to give security clearance to RIL for manufacturing aircraft parts and accessories. The Department of Industrial Planning and Promotion has sought security clearance for granting Mukesh Ambani-led Reliance Aerospace Technologies license to produce aircraft parts and accessories.
In its reply, DGH said despite repeated requests by the government in various correspondences and also in the management or technical committee to comply with the commitments made in the approved AIDP (field plan), contractor failed to act by the production sharing contract (PSC).
Faced with adverse comments from CAG over the falling gas production, the oil ministry had in May 2012 decided against letting RIL recover $5.5 billion it invested in creating additional infrastructure for pumping 80 mcmd (million cubic metres per day) of gas, which stands at 20 mcmd. RIL has initiated arbitration proceedings against the government over the order.
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