DGH urges stiff penalties on ONGC, RIL
The two gaints have been fined for not meeting the minimum work commitment in several blocks awarded to them.Updated: Sep 18, 2006 18:00 IST
Oil regulator DGH has recommended stiff penalties on state-owned Oil and Natural Gas Corp (ONGC) and Reliance Industries Ltd for default on commitments made by them on oil and gas exploration blocks awarded under NELP.
Directorate General of Hydrocarbons (DGH) has recommended a total penalty of $107.391 million on ONGC and $26.535 million on RIL for failing to fulfill the work programmme committed on the blocks awarded to them under New Exploration Licensing Policy (NELP), DGH sources said.
The penalty amount was recommended to the petroleum ministry for approval.
The DGH levied a penalty of $7.275 million on RIL for failing to do a 3D seismic survey and drill two exploratory well on block KG-OSN-97/3 and $2.645 million for unfinished 2D and 3D seismic survey and one undrilled exploratory well on block KG-OSN-97/4.
It also recommended $2.903 million cost recovery from RIL for failure to drill one exploratory well committed for block GK-OSN-97/1 and two wells on block MB-OSN-97/3.
Sources said ONGC was fined for not meeting the minimum work commitment in six blocks.
The regulator recommended recovery of $6.351 million for failure to drill two exploratory wells on block MB-OSN-2000/1, $19.615 million for three undrilled wells on block MB-DWN-2000/1 and $22.807 million for not drilling two wells on MB-DWN-2000/2.
ONGC was also levied $6.450 million for failing to drill one committed exploratory well on block GS-DWN-2000/1, $28.293 million for two undrilled wells on block GS-DWN-2000/2 and $23.872 million for one unfinished well on block KK-DWN-2000/4, they said.
"Whereas Reliance Industries Ltd could not complete the work programme even after getting extension of 18 months ie the maximum stipulated period. The money equivalent to the unfinished work programme is to be recovered from them," the DGH letter dated August 31 said.
First Published: Sep 18, 2006 18:00 IST