RIL-BP told to submit D6 records to CAG

17 Jul 2012

The oil ministry has asked Reliance Industries and its joint venture partner BP to submit all records and accounts relating to their D6 gas block to the Comptroller and Auditor General (CAG) for faster clearance of their plans.

''The denial of access to records to the CAG had invited adverse comments in previous audit by the CAG. It was also brought to the notice of the two companies that CAG recommended withholding of sanction to work plans and budgets if access to records is denied to CAG,'' the oil ministry said.

The oil ministry has asked the company representatives to make all the records and accounts of the KG D6 block available to the CAG as provided for in the production sharing contract.

Representatives of RIL and BP - PMS Prasad and Sashi Mukundan – had met minister of petroleum and natural gas S Jaipal Reddy on 13 July and requested speedy clearances in four of the KG-D6 blocks (NEC 25, KGD6 and two in Cauvery basin) being operated by the companies.

The ministry is reported to have agreed to recommend to the competent authority on two issues, viz, the declaration of commerciality of certain wells in the NEC 25 and KG D6.

The ministry also agreed to consider extension of appraisal period to facilitate the declaration of commerciality at an early date.