Gas field validation independent; no deals with RIL: Mustang | business | Hindustan Times
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Gas field validation independent; no deals with RIL: Mustang

business Updated: Aug 28, 2009 16:00 IST
PTI
Gas

Under criticism for its role in validating Mukesh Ambani-led RIL's $8.83 billion gas field costs, Mustang Engineering of the US on Friday said it did an "independent" evaluation and had never approached the firm for any commercial deals.

"Mustang's work for the KG-D6 Development (plan) was based on all available information and performed in an independent manner in October/November 2007," Woods Group - the parent firm of the engineering consultancy firm - said in an e-mailed statement from Houston.

"Wood Group has never received an approach from RIL for potential corporate transactions," the statement said, rejecting allegations by Anil Ambani group that RIL had in 2006 proposed to buy the John Woods Group.

On complaints that RIL was 'gold-plating' (inflating) its gas field expenditure, the government had in 2007 appointed eminent consultant and reservoir engineer P Gopalakrishnan and Mustang Engineering to validate the cost estimates.

Anil Ambani Group, fighting a legal battle to source gas from RIL's KG-D6 fields at less than market price, had stated the Mustang was not the best to validate because it had carried out separate work on behalf of RIL.

"Mustang has been providing highly ethical engineering services since its establishment in 1987, and Wood Group and Mustang stand behind its work," the statement said.

Mustang was awarded a contract for Panna/Mukta and Tapti field, where RIL holds 30 per cent interest, by the field operator BG Group.

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