Complying with PSC, industry practice in KG-D6: RIL

With the CAG criticising it for violating the contract for its showpiece KG-D6 gas fields, Reliance Industries (RIL) today said it remains compliant with all contractual provisions, including following good international industry practice.

RIL, in a press statement, said it cannot comment on the final audit findings of the Comptroller and Auditor General (CAG) on the KG-D6 block for 2006-07 and 2007-08, which were tabled in Parliament today, as it was yet to see the report.

"We reiterate that, as a contractor, we remain committed to complying with the Production Sharing Contract (PSC) provisions and procedures, including adopting Good International Petroleum Industry Practices (GIPIP) in our operations," it said.

RIL said it had provided the Oil Ministry, the Directorate General of Hydrocarbons (DGH) and CAG with detailed comments on the draft audit report that was communicated to it.

"Since many of the comments in the draft report had referred to issues that were technical in nature, we had offered to the CAG a complete and thorough interaction with subject matter specialists," it said.

"We remain open to such interaction at all times," it added.

"We maintain that, in KG-D6, RIL has set a global benchmark for effective, efficient project completion and capital cost-competitiveness under the most trying circumstances and we are proud of our achievements," the statement said.

Even the CAG had appreciated RIL effort. "We appreciate the efforts of the operator in executing this world-class mega-greenfield deepwater oil and gas infrastructure in India within record time," the CAG report said.

The Mukesh Ambani-run firm said it has and will continue to cooperate with the government on audits, as per the provisions of the PSC.