Home » KG-D6 | RIL hit by $380 mn additional penalty

KG-D6 | RIL hit by $380 mn additional penalty

KG-D6 | RIL hit by $380 mn additional penalty
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The government has slapped an additional penalty of $380 million on Reliance Industries and its partners for producing less than targeted natural gas from the eastern offshore KG-D6 fields.

With this, the total penalty for missing the target in five fiscal years beginning April 1, 2010, now stands at a cumulative $2.76 billion.

´Up to financial year 2013-14, the cost recovery proposed to be disallowed was $2.376 billion and consequent demand of Government of India share of additional profit petroleum of $195.3 million on cumulative basis. On June 3, 2016, the company received a revised claim up to year 2014-15 with a disallowance of $2.756 billion on cumulative basis and consequent demand of Government of India share of additional profit petroleum of $246.9 million, also on cumulative basis,´ RIL said in a regulatory filing to the stock exchanges.

The company said that disallowance of cost is currently under arbitration.

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