Oil ministry should review KG basin contracts: CAG

Oil ministry should review KG basin contracts: CAG

New Delhi: The Comptroller and Auditor General (CAG) said the petroleum ministry should review determination of contracted areas to exploration companies in the Krishna Godavari basin, off India’s east coast, in a report tabled in Parliament on Thursday.

The CAG report questioned the “reasonableness of costs incurred" in the 2007-08 procurement activity in the area and said there was enough ground to revisit the profit sharing mechanism.

The petroleum ministry said in June it was examining the draft report, and would prepare a reply to the audit observations after obtaining details from relevant agencies.

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