As per recent news, Reliance Industries Ltd (RIL) owner Mukesh Ambani, Reliance Industries Ltd brought the ministry in its Supreme Court revised petition on Friday and demanded to act on its November 24 arbitration notice, source said.
Mukesh’s plea action is acted just a day after a legal notice issued by the oil ministry on Reliance Industries Ltd (RIL) for paying of $1.2 billion, or about Rs 7,000 crore as ministry loss due to a sharp fall in gas output from its showcase Andhra offshore field.
The arbitration notice served by the ministry on Wednesday, any recovery from sale of gas would not be allowed while the cost of its investments worth $457 million made in the field in 2010-11 and $778 million in 2011-12.
RIL is totally failed to get gas production level set in the field’s contract as Gas volumes have dropped to 27mcmd against 62mcmd committed by Reliance, ministry said.
While in its revised petition, RIL said in counter argument, “… a contractor is entitled to recover all of its costs under the terms of the PSC (production sharing contract with the government) and there are no provisions that entitle the government to disallow recovery of any contract cost as defined in the PSC.”
After waiting a long period of five months for getting an arbitrator, RIL had sought the court’s intervention on April 17. And after serving ministry’s arbitration notice that was opposed RIL, RIL revised its petition demanding to probing technicalities – and not on the “substance” – raised by the court registrar.
