The Comptroller & Auditor General of India (CAG) Performance Audit Report on the Hydrocarbons Production Sharing Contracts (MoPNG) has. PAC rejects Reliance’s criticism of CAG’s audit process of KG Basin Block reports on the production sharing contracts — the RIL-operated KG. New Delhi: Reliance Industries has sought “suitable opportunity” to respond to a CAG report that indicts it on receiving undue favours from the oil ministry, saying .
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Healthcare in India is unaffordable for most people.
The higher the cost recovery by the company, the lower the profit that goes to the exchequer. Further, the profit-sharing is itself lop-sided: It is going to be a long walk to make a strong statement on gender equality in the country.
The related parties transaction were primarily for purchase of fuel and chemicals by following a competitive bidding process and was indeed supplied at a price lower than what was procured through Indian Public Sector Companies.
This will reduce the incentive for skewed volume and timing of capital expenditure resulting in very low Government of India share of profit petroleum.
The CAG was critical of bwsin oversight, particularly on high value procurement decisions, and sought an “in-depth review” of 10 contracts, including eight awarded to Aker Group by Reliance on a single-bid basis.
My Saved Articles Sign in Sign up. The reports of these experts are available on its website, www. Jaipal Reddy saying on Friday that it would not try to change the terms of its the production-sharing contract PSC with the company. The independent nature of these studies conducted by globally reputed consultants has acknowledged RILs commendable efforts in bringing to stream Indias first deep water hydrocarbons production facility in record time.
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CAG flays Oil Min for allowing RIL to retain D6 area
Overall, RIL was yet to give up an area of These payments are relating to the goods and services supplied to KG-D6 project. The CAG audit has remarked that if the independent report on the verification of allegations made by the Oil and Natural Gas Corporation is accepted, then the kgg of the game would change adversely against RIL.
If the cost petroleum is high, the profit petroleum is low.
Also, cost recovery for doing discovery conformity test should be looked into, it said. In the new year, marketers will have to focus on four new essentials. The Common Cause has supported Dasgupta’s arguments and referred to controversial intercepted telephonic conversations between former corporate lobbyist Niira Radia with others to support the allegation of collusion. Accordingly, the ministry plans to disallow RIL this cost recovery from the D6 block for and While expenditure incurred in and was audited by CAG, remaining expenditure incurred from onwards would nasin covered in the future audit.
IPA reported as follows: The most significant part of the report is a word of caution about a subject that is o related to the cost recovery.
PAC rejects Reliance’s criticism of CAG’s audit process of KG Basin Block – The Hindu BusinessLine
Furthermore, no negative replies have been received to any of the questions basln the confirmation. As part of the audit process, RIL had provided its responses to the CAG and the views of technical experts on the subject.
CAG report on demonetisation to be ready before Budget Session. It was also reiterated by the Ashok Chawla Committee on allocation of natural resources.
As per the Production Sharing Contract PSCan operator is allowed to recover all his cost before sharing profit with the government, a provision which CAG says encourages companies to inflate cost to delay profit sharing. CAG in its report tabled in Parliament today said RIL refused to connect to production system four wells it had drilled on the D1 and D3 gas field in KG-D6 block on the pretext that they would not produce adequate incremental volume to justify the additional capex spend.
Reliance Industries response to CAG report on KG-D6 basin
Technological advances with 3D seismic data have placed seismic technology almost on par with drilling in respect of its ability to aid in appraising a discovery and in establishing a geological model. Never miss a great news story! This flaw was pointed out in relort explosive CAG report of ‘ Key vendors are all reputed companies and global leaders in oil services, onshore engineering and construction, sub-sea reprt and pipeline installation.
This article is closed for comments. There were questions of relinquishing these over valid technical grounds.