The government is taking steps to ascertain whether Reliance Industries (RIL) hoarded natural gas produced from KG-D6 field in anticipation of higher prices.
In this regard, the government plans to appoint a reputed independent consultant. If the consultant feels that RIL hoarded gas in anticipation of higher prices, it would be penalised.
RIL would be liable to make up for the shortfall at the old price if it is found to have hoarded gas. However, any such move would require fresh approval from the cabinet, which has already approved the new price for all the gas.
RIL was rapped by the directorate general of hydrocarbons (DGH) for the fall in output in the D6 block. The technical arm of the oil ministry alleged that the company did not drill the promised number of wells.
RIL, on the other hand, says that the field’s geology turned out to be different from what was initially expected, and drilling more wells would not have raised production.
Earlier, RIL asked the government to consult any reputed international expert for a neutral, informed assessment of the matter.