Refusing to buy Mukesh Ambani-owned RIL’s (Reliance Industries Ltd.) explanation over the three-fold jump in costs to develop gas fields, Anil Ambani-owned Reliance Natural Resources Ltd. (RNRL) on Tuesday asked the Petroleum and Natural Gas Ministry to expedite the Comptroller and Auidtor General (CAG) audit and appoint an international expert to re-validate the expenses. In a letter to Petroleum Secretary R. S. Pandey RNRL Group President A. N. Sethuraman has stated: “RIL has once again made vague and general remarks in its letter to the Petroleum Ministry without providing any substantial material justifying why the capital expenditure on KG-D6 gas has gone up from Rs. 12,000 crore to Rs. 45,000 crore when the production only doubled to 80 mmscmd.”

Raising questions on the independence of independent experts appointed by the Directorate General of Hydrocarbon (DGH) in the wake of several complaints regarding the gold-plating of costs, RNRL suggested that a reputed international expert with experience in deep-water blocks should revalidate the capital expenditure.

Keywords: RNRLRILgas disputeCAG


No takers for RIL’s high-priced gas: RNRL August 30, 2009