Reliance ‘rejects ONGC gas claim’

19 October 2015, News Wires – India’s Reliance Industries has rejected any possible claim by state-owned Oil  & Natural Gas Corporation (ONGC) on natural gas migrating from the latter’s block to Reliance’s neighbouring contiguous fields in the Bay of Bengal after all expenses are accounted for, according to a report.

ongcReliance said in a communication to employees, cited by the Press Trust of India, it has “scrupulously followed every aspect of the production sharing contract and has confined its petroleum operations within the (boundaries of its) KG-D6 Block” in the Krishna Godavari basin.

All wells, it said, were drilled “strictly within the KG-D6 block boundaries, as per the development plan approved by the relevant authorities under the PSC”.

Reliance reported a stronger-than-expected 12.5% rise in its fiscal second-quarter profit as margins in its core refining business rose to a seven-year high.

Consolidated net profit rose to 67.2 billion rupees ($1.04 billion) for the three months to 30 September from 59.72 billion rupees a year earlier, Reliance said in a statement.

Analysts on average had expected a net profit of 59.47 billion rupees, according to Thomson Reuters data.

However, Reliance’s revenue fell more than a third from a year earlier to 751.17 billion rupees as a plunge in crude prices put pressure on refined fuel prices.

Controlled by India’s richest man Mukesh Ambani, Reliance is India’s second-largest company by market value, and runs the world’s largest refinery complex while also holding stakes in exploration and production blocks.

The company, which gets most of its revenue from its refining and petrochemicals businesses, has been expanding into consumer businesses such as retail and telecoms to aid growth.

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