Facing allegations of approving Reliance Industries’ inflated gas field costs that could hurt government revenue,oil regulator DGH launched an advertisement campaign on Wednesday saying the exchequer would get USD 16.57 billion compared to USD 9.5 billion for the company.
Directorate General of Hydrocarbons,through full-page advertisements,said that the capital expenditure at RIL’s KG-D6 field had gone up from USD 2.47 billion to USD 8.8 billion due to a three-fold rise in plant capacity,doubling of output,16 additional wells and a host of other facilities.
The advertisement was reminiscent of Anil Ambani group firm RNRL’s ad campaign in August,wherein the company accused the oil ministry of helping RIL earn super-normal profits.
RIL had then gone to court,alleging that the propaganda was intended at prejudging the issues pending before courts.
KG-D6 cost ranks amongst the lowest in the world,DGH said citing Goldman Sachs report of 32 similar projects. DGH said at USD 4.20 per mmBtu price,the Government will earn in profit share,taxes and royalty Rs 77,879 crore while the net revenues to RIL-Niko combine would Rs 49,961 crore.
Without naming Anil Ambani Group firm Reliance Natural Resources,DGH said the Production Sharing Contract (PSC) provides only actual expenditure to be accounted and the same was subject to multiple levels of audit.
RNRL had yesterday filed a petition in Supreme Court accusing DGH head V K Sibal of colluding with RIL in approving the “gold-plated” costs.