RIL open to CAG audit on gas field expenditure

RIL open to CAG audit on gas field expenditure

New Delhi: Reliance Industries has written to the government that it has no objection to the Comptroller and Auditor General of India auditing its gas field costs and said that it is operating the field in compliance with rules.

As a follow up of the meeting called by the oil ministry yesterday to tell private operators that it can appoint CAG to audit their oil and gas field costs, RIL senior vice president (commercial) B.Ganguly wrote, saying that the company had no objection to any special audit of KG-D6 PSC (production sharing contract) by CAG as desired by the government.

Ganguly, who represented RIL at the meeting on Monday, had told the ministry verbally that the company was ready and open to any scrutiny.

In the letter, he stated that the PSC gives government the right to audit records of operators within two years from the end of a financial year and in case of KG-D6 the same has been exercised until 2006-07.

Despite the accounts being audited by the government appointed auditor, RIL said: “To reiterate the fact that we are transparent in our operations. We convey our no-objection to any special audit of KG-D6."

“However, we hope that this is one time exception which does not create a precedent for the future," Ganguly wrote.

RIL further stated that all its operations were being conducted in accordance with good petroleum industry practices and in compliance with all the provisions of the PSC.

“CAG had been seeking some originals from the DGH and it had at no point approached RIL directly and the company had never denied any of the documents to it," he said.

The official explained CAG’s reluctance to ask for documents directly from private firms as it is seeking a clarification on its charter if it can go into books of private companies.