• Petroleum ministry slaps $250-mn profit petroleum penalty on Reliance Industries

    The petroleum ministry has slapped a penalty of nearly $250 million on Reliance Industries (RIL) to make good the government’s loss of “profit petroleum” owing to the firm’s inability to meet the natural gas production targets from the Krishna-Godavari (KG) D-6 block. “In a communication sent on June 3 to RIL by the government, the penalty has revised from $195 million as on March 31, 2014, to $246.9 million till March 31, 2015,” a senior official told FE. The KG-D6 fields started production in April 2009. The current production of around 8 million metric standard cubic metres per day (mmscmd) is a far cry from the peak of over 69 mmscmd achieved in early 2010. The block was envisaged to produce more than 80 mmscmd of the fuel. Profit petroleum is the main source of revenue for the government from a hydrocarbon block. It is calculated using what is called an investment multiple that denotes how many times the earnings are to the investment. Trey Hopkins Authentic Jersey

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