Reliance Industries has received a fresh blow as Directorate General of Hydrocarbons (DGH) has rejected two discoveries, reports CNBC-TV18's Nayantara Rai quoting sources.
It is learnt that the rejected discoveries are located in the NEC 25 offshore.NEC 25 is located in the Bay of Bengal wherein RIL holds 90% and Niko has the rest 10%. RIL had claimed 0.7 tcf in the two wells of recoverable reserves. However, DGH is unhappy and wants the reserves to be downsized to 0.3 tcf. With his, RIL has to submit fresh proposal to DGH. Following the news, the stock fell below Rs 1000. After a review in March, the DGH had found fault with Reliance Industry's commitment to up production at its KGD6 block. The DGH said the government share of profit gas has been hit on account of RIL's tardiness and has directed the company to drill more wells. Do not miss this story: RIL 'highly complacent' on KG-D6 production targets: DGH Here is the verbatim transcript of her comments on CNBC-TV18. Also watch the accompanying video. The DGH is asking Reliance to cut its capex. It believes that itDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
