RIL wants oil min to re-think on new exploration policy

Reliance Industries   (RIL) has protested against the oil ministry's proposal on the new exploration law since it will impact former's drilling plans at its KG-D6 basin. Sources inform CNBC-TV18 that RIL has already written to the ministry to reconsider the proposed law.

Sources inform that the ministry wants to formulate a policy to allow cost recovery of an exploration well drilling in a producing field, only in circumstances where it leads to a commercially exploitable find.

This will turn out to be a dampener for RIL as it would not allow companies like it to first recover all their costs before sharing profits with the government