NEW DELHI: The Directorate General of Hydrocarbon has given a clean chit to Reliance Industries' capital expenditure of $2.5 billion spent up to 2007-08 in developing the KG-D6 gas fields because the CAG's audit has not quantified any loss to the exchequer.
RIL gets clean chit for capex till FY08 in KG-D6 gas fields - Economic Times
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The technical advisor of the oil ministry told the government that CAG will now inspect accounts of RIL-operated D6 block since 2008-09 and if it quantifies any illegitimate expenditure, the same will be recovered from the company, officials in the oil ministry and DGH said. Cost recovery is the key plank of the New Exploration Licensing Policy (Nelp) that invites companies to bid for oil and gas blocks. Under Nelp, the risk is borne entirely by energy firms. They have sunk about $9 billion or risk capital in Indian basins, out of which $7.2 billion has been lost in unsuccessful drilling and the companies do not get any compensation for this.RIL gets clean chit for capex till FY08 in KG-D6 gas fields - Economic Times
