the ministry gave the option that they be given the increased gas price provided they furnish bank guarantee against their share of extra revenue.
The ministry has also proposed that KG-D6 gas buyers, mainly state-run fertiliser companies, be directed to deposit the separate funds directly into the RIL account and a government-nominated account.
If it is proved that RIL deliberately produced less gas from KG-D6, the bank guarantee will be encashed depriving RIL of the incremental revenue.
BP and Niko, which have maintained that they are party to the arbitration and RIL has represented them as an operator representing the interests of all the KG-D6 constituents, are likely to file separate arbitration notice.
RIL KG-D6 output drops again
After two months of increase, gas production from Reliance Industries’ KG-D6 block has again started to drop. Output has dropped to 13.28 mmscmd in March, the DGH said in a report to the oil ministry.