No plans to alter output-sharing pact with RIL in KG-D6 block: OilMin

The government does not plan to alter its production-sharing contract with Reliance in the KG-D6 block currently, Oil minister S Jaipal Reddy said on Friday.

“There is no change in the production sharing agreement contract with Reliance,” Reddy said.

Last month, Reliance said it had begun arbitration proceedings against the government over cost recovery related to the KG-D6 block which it operates.

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Reliance said in a statement it was concerned by reports that the oil ministry would seek to restrict the amount the company takes out towards cost recovery from its revenues from sale of gas produced from the D1 and D3 fields in the block.

Reliance, India’s largest listed company, has seen its growth outlook marred by falling gas output from the KG D6 gas fields and has lost more than a quarter of its market value this year.

Reuters