Development cost of K-G gas field not gold-plated: Valuers
Reliance Industries has not gold- plated its $8.836-billion cost for developing Krishna- Godavari basin gas field, independent valuers appointed by the government have said.
By Agencies |
NEW DELHI: Reliance Industries has not gold- plated its $ 8.836-billion cost for developing Krishna- Godavari basin gas field, independent valuers appointed by the government have said.
Mustang International, which was commissioned by the Petroleum Ministry to verify cost estimates submitted by Reliance Industries for developing Dhirubhai I and III gas fields in KG D6 blocks, stated in its report that work of such magnitude would need at least $ 9.035 billion, government sources said.
RIL had proposed investing $ 5.197 billion in phase I of the gas field development ending third quarter of 2008 and another $ 3.639 billion in phase II for producing 80 million standards cubic meters per day of gas from K-G D6 fields.
The independent valuers were deputed after allegations were made that RIL had inflated the gas field development cost.
Mustang International, which was commissioned by the Petroleum Ministry to verify cost estimates submitted by Reliance Industries for developing Dhirubhai I and III gas fields in KG D6 blocks, stated in its report that work of such magnitude would need at least $ 9.035 billion, government sources said.
RIL had proposed investing $ 5.197 billion in phase I of the gas field development ending third quarter of 2008 and another $ 3.639 billion in phase II for producing 80 million standards cubic meters per day of gas from K-G D6 fields.
The independent valuers were deputed after allegations were made that RIL had inflated the gas field development cost.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
