The Government of India has imposed an additional fine of $579m on Reliance Industries for failing to meet natural gas production targets at the KG-D6 block.

The latest fine brings the total penalties imposed on Reliance in recent years to $2.37bn.

It is the fourth penalty imposed on the company since 2011, after allegations that Reliance failed to meet production targets from the KG-D6 block.

"The latest fine brings the total penalties imposed on Reliance in recent years to $2.37bn."

India Oil Minister Dharmendra Pradhan said Reliance had established facilities to produce 80 million cubic metres of gas per day but actual production was much lower than expected.

The Financial Times reported that Reliance declined to comment but one source denied any wrongdoing on behalf of the company.

KG-D6 was the single largest source of domestic gas in India for 2011 and accounted for approximately 35% of the total gas consumption in the country.

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By GlobalData

In February 2011, Reliance formed a strategic partnership with BP and signed relationship framework and transactional agreements.

The partnership allowed BP to acquire a 30% interest in 23 oil and gas production sharing contracts that Reliance operates in India, including the KG-D6 block.

Energy