Economy

Oil Ministry promises speedy clearances to RIL proposals

Our Bureau New Delhi | Updated on March 12, 2018 Published on July 17, 2012

Asks the company to make D6 records available to CAG

The Petroleum Ministry has promised expeditious clearance for investment proposals made by Reliance Industries Ltd and its partner BP in four oil and gas blocks being operated by them.

At the same time it has asked the companies to make all the records and accounts of the KG D6 block available to the Comptroller and Auditor General.

In a statement issued here on Wednesday, the Ministry said that the representatives of the RIL and BP, Mr P.M.S. Prasad and Mr Sashi Mukundan had met the Minister of Petroleum & Natural Gas, Mr S. Jaipal Reddy, on July 13.

They had sought speedy clearances in four of the Blocks (NEC 25, KG D6, and two in Cauvery basin) being operated by them.

“It was agreed at the meeting to recommend to the competent authority on two issues namely the Declaration of Commerciality of certain wells in the NEC 25 and KG D6,” the statement said.

The representatives were told that the Ministry would consider extension of appraisal period to facilitate the declaration of commerciality at an early date. It was also agreed that quicker approvals for two blocks in the Cauvery Basin, according to the extant Government Policy, would be given.

The Contractors were also informed that denial of access to records to the Comptroller and Auditor General (CAG) was adversely commented upon in previous CAG audit.

In fact, the CAG had recommended withholding of sanction to work plans and budgets if access to records is denied.

“Therefore, the company representatives were requested to make all the records and accounts of the KG D6 block available to the CAG as provided for in the Production Sharing Contract,” the statement said.

>richam@thehindu.co.in

Published on July 17, 2012
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