Mumbai, Aug 18 (IANS) Reliance Industries (RIL) on Thursday said the additional $380 million denied to it by the government towards the cost of extracting discovered gas is part of a larger dispute under arbitration.
The company also said the amount was the result of a revision from time-to-time which the Petroleum Ministry conducts, based on its own assumptions of the original disputed amount. The mater pertains to gas in Krishna-Godavari basin.
“Upto financial year 2013-14, the cost recovery proposed to be disallowed was $2.376 billion and the consequent demand of the Government of India share of additional profit petroleum of $195.3 million on cumulative basis,” the company said in a regulatory filing.
“On June 3, 2016, the company received a revised claim up to year 2014-15, with a disallowance of $2.756 nillion on cumulative basis and consequent share of Government of India share of additional profit petroleum of $246.9 million, also on cumulative basis,” it added.
“We reiterate that all claims made by Government of India are denied by contractor group (led by Reliance Industries) and currently part of an ongoing arbitration.
The company said every year the government uses its own interpretations of the contract with the Reliance Industries-led consortium in ascertaining to what extent the cost of extracting gas should be denied and enjoins it to arrive at a cumulative figure.
This is also done towards additional profit petroleum it seeks from the contractor.