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The Ministry of Petroleum and Natural Gas has directed GAIL (India) and Chennai Petroleum Corporation Ltd (CPCL) to remit the proceeds from crude oil and natural gas sales from KG-D6 into the Government account.
The Ministry seeks to recover $115 million (divided equally between the two companies). Minister of State (Independent Charge) for Petroleum and Natural Gas Dharmendra Pradhan informed the Lok Sabha that RIL has also been asked to remit the additional profit petroleum of $195 million up to 2013-14.
He said that $2.37 billion of cost of production has been disallowed to Reliance Industries Ltd up to March 31, 2014.
Gas production in KG-D6 has come down to 8.05 mmscmd (million standard cubic metre a day) as of June 2014 as against the revised development plan target of 80 mmscmd. Production has fallen from 35.33 mmscmd in 2011-12 to 9.77 mmscmd in 2013-14.
“RIL has already invoked arbitration against the action of the Ministry of Petroleum and Natural Gas for disallowing the cumulative development costs,” Pradhan said.
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