CAG keen to audit KG-D6 performance: Sources

The Comptroller Auditor General of India (CAG) has begun fresh audit on the performance of oil blocks of Reliance Industries, Cairn India and Oil and Natural Gas Corp, inform CNBC-TV18 sources.

CAG has an entry conference with the oil ministry on May 11 and on April 10,

CAG asked oil secretary to  get document from operators. CAG has intended field audit on KG-D6 basin on June 18 but has yet to receive requisite document from RIL for the same.

Sources say, RIL is not in favour of the audit and believes that performance audit by CAG is beyong the production sharing contract signed at the time of the allotment of blocks by the government.

.CAG has done a performance audit for KG-D6 well for FY07 and FY08.

Earlier, CAG has already begun extensive  audit of the four oil and gas blocks being operated by Mukesh Ambani-owned RIL, Anil Aggarwal-owned Cairn India Limited and the Panna-Mukta Tapi (PMT) assets, a joint venture of RIL, ONGC and British Gas, following an order issued by the government earlier this year

The audit covers the activities of the Directorate-General of Hydrocarbons and the Petroleum Ministry to verify whether revenue interests of the Government of India were properly protected and system/procedures of the Ministry and the DGH to monitor and ensure compliance with PSC were adequately followed. The government also expressed the desire to extend the audit up to 2011-12.