Seeking implementation of domestic natural gas pricing guideline 2014
Reliance Industries announced that the Company along with BP and Niko have issued a notice of arbitration on 09 May 2014 to the Government of India seeking the implementation of the 'Domestic Natural Gas Pricing Guideline 2014' notified on 10 January 2014.The continuing delay on the part of the Government of India in notifying the price in accordance with the approved formula for the Gas to be sold has left the parties with no other option but to pursue this course of action.
Without this clarity, the parties are unable to sanction planned investments of close to $4 billion this year. In addition, this will also delay the ability of the partners to appraise and develop their significant discoveries made last year. Overall, the parties were planning to invest $8-10 billion in the next few years to significantly increase production from the KGD6 block.
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