The Petroleum Ministry has sought eight weeks to submit its reply on Comptroller and Auditor General's draft audit report on some important exploration production sharing contracts.
This was stated by the Petroleum Minister, Mr S. Jaipal Reddy.
The PSCs include the Reliance Industries Ltd-operated Krishna Godavari Basin D6 gas block; Cairn India operated Rajasthan oilfields; and the BG-ONGC-RIL joint venture Panna-Mukta-Tapti fields.
“Our Ministry has asked for eight weeks' time. We need to look at files dealt with years ago,” he said.
The Minister was speaking to newspersons following attacks on his Ministry based on the criticism in the CAG report. The report had criticised the Ministry and the Directorate General of Hydrocarbons (DGH) for allowing some explorers to inflate costs of field developments and explore beyond their contracted areas.
On strengthening offices of the DGH as suggested in the draft report, he said, “We will approach with an open mind. We will strengthen the institution of DGH if need be.”
The Petroleum Ministry in November 2007 had requested the auditors to carry special audits in respect of certain blocks/fields operated under NELP and Pre-NELP regime. The CAG audit covers two financial years 2006-07 and 2007-08, and has not examined accounts of subsequent two years, he said.
“They themselves have said in the draft report that they are not in a position to quantify (loss if any to the exchequer),” he said adding that “Even CAG has not been able to quantify so should we rush in where angels of CAG fear to tread”.
Refuting the allegations made by senior BJP leader, Mr Murli Manohar Joshi, and CPI (M) leader, Mr Sitaram Yechury he said, “By making such criticism, I am afraid they are prejudicing the process of objective examination by CAG.”
“It's a draft report. By criticising it they (Mr Joshi and Mr Yechury) are jumping the gun,” he added.
On the issue of D6 gas pricing ($4.2/mBtu) raised by certain quarters, he said that the CAG draft report does not make any reference to the gas price.
The gas price was fixed by an empowered group of ministers and “if decisions taken by an EGoM are to be criticised personally, then there is no shelter for Ministers. Decisions taken in EGoM are collective…”