Reliance Industries shares down 1%

This follows reports that Oil Ministry hiked penalty it wants to impose on RIL.

Written by Agencies | Mumbai | Published: May 4, 2012 12:45 pm

Reliance Industries shares fell over 1 per cent in the morning trade today following reports that Oil Ministry has hiked the penalty it wants to impose on the company and its British partner BP plc for falling natural gas output from KG-D6 fields,by 18 per cent to USD 1.46 billion.

After a weak opening,shares of the company further lost 1.46 per cent to Rs 728 on the BSE.

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Similarly,at the NSE,the stock was down 1.36 per cent to Rs 728.80.

The drop in reservoir pressure coupled with increased water and sand ingress has seen output from Dhirubhai-1 and 3 gas fields in the deepsea KG-DWN-98/3 or KG-D6 block fall from 53-54 million standard cubic meters per day achieved in March 2010 to 27.5 mmscmd last month,instead of rising to projected 80 mmscmd for current year.

The Ministry feels the drop in pressure had resulted in under-utilisation or creation of excess capacity and wants to disallow cost recovery in proportion to that.

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