Reliance Industries says Oil Ministry move on KG-D6 cost-recovery illegal

NEW DELHI: As the Oil Ministry readies to take action against Reliance Industries for the fall in output from the KG-D6 gas fields, the Mukesh Ambani-led firm has warned that any attempt to limit cost-recovery is illegal and will be challenged in court.

The ministry and its technical arm, the DGH, are upset with RIL because production from the Dhirubhai-1 and 3 (D1 and D3) gas fields in the prolific KG-D6 block has fallen from 61 million cubic metres per day in March, 2010, to about 37 mmcmd, instead of rising to 61.88 mmcmd, as projected by the company when it got its USD 8.8 billion capital expenditure plan for development of the field approved in 2006.