Oil ministry seeks legal opinion on Reliance Industries Bank guarantee

As per a news published on PTI, The ministry previously feeling that since charges of gas accumulation had been levelled against RIL (Reliance Industries Limited), the company (RIL) should submit bank sureties equivalent to the incremental price that the consortium would get the output from KG-D6.

The Oil Ministry has sought legal opinion as to whether bank guarantees to cover the increase in gas prices from April need to be furnished by RIL(Reliance Industries) alone or by partners BP and Niko Resources as well.

Reliance Industries had represented against decision of the oil ministry to seek legal opinion, saying it owns only 60 percent of KG-D6 and would get a proportionate share of the incremental revenue, sources privy to the development said. BP Plc of UK has a 30 per cent interest in the eastern offshore KG-D6 block and the remaining 10 per cent is with Niko Resources of Canada.

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