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Government asks Reliance to respond in 30 days on $1.55 billion in penalty notice - source

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Reuters NEW DELHI
Last Updated : Nov 04 2016 | 2:22 PM IST

NEW DELHI (Reuters) - Oil ministry has given Reliance Industries and partners 30 days to respond to a $1.55 billion penalty notice, issued earlier on Friday, for selling gas belonging to blocks operated by Oil and Natural Gas Corp, an oil ministry source said.

Reliance's shares fell by about 1.6 percent on the news.

International consultant DeGolyer & MacNaughton said in a report that 11.125 billion cubic meters of gas migrated during the six years to March 31, 2015, from ONGC's two blocks in Krishna Godavari basin, off the country's east cost, to the one operated by Reliance.

Reliance did not immediately respond to an email seeking comment.

ONGC's two blocks are adjacent to the Reliance-operated block, in which U.K.-based BP holds 30 percent stake and Calgary-based Niko Resources Ltd has 10 percent share

(Reporting by Nidhi Verma; Editing by Christian Schmollinger)

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First Published: Nov 04 2016 | 2:06 PM IST

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