Online BusinessCAG to audit contracts for RIL's D6 gas field
Minister of state for petroleum and natural gas Jitin Prasada, in a written reply to the Rajya Sabha, today said the Comptroller & Auditor General would audit the product sharing contracts (PSC) of Reliance Industries Ltd’s D6 gas block in the Krishna-Godavari basin for 2006-07 and 2007-08.
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This is an exercise of the government’s audit and inspection rights under the PSC.
The petroleum ministry had asked the government auditor to inspect the accounts of RIL, following allegations that the contractor was inflating the development cost of the gas fields—Dhirubhai-1 and Dhirubhai-3—in the D6 Block of the Krishna-Godavari basin.
RIL has provided most of the documents related to the KG-D6 gas basin to facilitate an audit, minister of state for petroleum and natural gas Jitin Prasada told the upper house of Parliament today.
He further informed the house that RIL has expressed willingness to provide all details and access to the records of KG-D6.
RIL and its partner, Niko Resources, have envisaged an investment of $8.84 billion for developing the two gas fields.