Executives of Reliance Industries Meets CAG Officials

Executives of Reliance Industries Meets CAG OfficialsThe executives of Reliance Industries held a meeting with Comptroller and Auditor General (CAG) officials today, to discuss KG-D6 gas fields. The team of Reliance Industries was led by Reliance Executive Director, P M S Prasad, who explained the observations of CAG d mentioned in the draft report.

The CAG is holding Exit Conference with private firms and the oil ministry before finalizing the audit report on Reliance's KG-D6 gas field, Cairn's Rajasthan oil block and BG's Panna-Mukta and Tapti oil and gas fields.

In its draft report, the CAG has estimated that there was an estimated increase in D6 capital expenditure from $2.4 billion to $8.7 billion between May 2004 and October 2006, which is likely to affect government’s financial situation. In response to the CAG’s report, the RIL said that between 2005 and 2008, the oil and gas development costs increased sharply.

The CAG has claimed that CAG also claimed that instead of a complete development plan that was mandatory under the production-sharing contract, RIL submitted an initial development plan (IDP) in May 2004 and later on made an addition to it.

Top executives from Reliance Industries Ltd will be holding consultations with the CAG tomorrow before the officials from the petroleum ministry and DGH.