GREY:NKRSF - Post by User
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Dell1on Jan 16, 2017 9:22am
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Post# 25711827
KG-D6
KG-D6 KG-D6: $1.55 billion penalty and fall in gas output
The government imposed a penalty of $1.55 billion on RIL for extracting ONGC’s share of natural gas in the Krishna-Godavari basin and producing it as its own. RIL’s has served an arbitration notice against the penalty. “The company remains convinced of being able to fully justify and vindicate its position that the Government’s claim is not sustainable,” it said. RIL said it has worked within the boundaries of the block awarded to it and has complied with all applicable regulations and provisions of the Production Sharing Contract (PSC). It has already invoked the dispute resolution mechanism in the PSC and has issued a Notice of Arbitration to the government in November, it said.
Further, RIL said the natural gas output from its D6 fields in the Krishna Godavari basin fell 29% on-year to 24.4 billion cubic feet in the fiscal third quarter. Fall in oil and gas production was mainly on account of natural decline in the fields, it said.