Friday 4 November 2016

Government slaps $1.5 bn penalty on RIL for drawing ONGC's gas in KG basin

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A man walks past an advertisement of Reliance Industries Limited at a construction site in Mumbai.
The government on Friday sought $1.5 billion from Reliance Industries as penalty for using the migrated gas from the block of state-run Oil and Natural Gas Corporation (ONGC) in the Krishna-Godavari basin off the Andhra pradesh coast.
Oil ministry has given Reliance Industries and partners 30 days to respond to the penalty notice
Shares of Reliance Industries were down 1.28 per cent to Rs 1012.30 at 1:20 pm.
In a report by Justice AP Shah committee, it found the operators guilty and recommended the compensation on RIL and its partners for “unjust benefit” received through migration of gas. Reports suggest that the government is set to come out with a notification in this regard by the end of this week.
International consultant DeGolyer & MacNaughton said in a report that 11.125 billion cubic meters of gas migrated during the six years to March 31, 2015, from ONGC's two blocks in Krishna Godavari basin, off the country's east cost, to the one operated by Reliance.

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