OREANDA-NEWS. September 5, 2011. Reliance Industries has reiterated its concerns about the impact of Comptroller and Auditor General of India's harsh criticism of companies that have discovered large oil and gas fields, and said that " ill-conceived reports" that are unduly critical would hamper efforts to boost output and will only help oil exporting nations.

In a move to prevent undue criticism by the CAG in its final report expected to be tabled in Parliament at the end of the current session, RIL has asked the government and the CAG to consider company's response before finalising the report. In June, a draft CAG audit report on performance of private energy companies, including RIL and Cairn, had criticised them for mismanaging oil and gas blocks, leading to significant erosion of companies' valuations.

"Ill-conceived reports that are unduly critical of Indian companies will only help the cause of those who are concerned at the growth and development of Indian industry which is threatening the stranglehold of energy imports on which we are deeply dependent," RIL wrote to the oil ministry, its technical arm Directorate General of Hydrocarbon and principal director of audit at the CAG last month.

RIL has asked the CAG to consider India's energy security before being unduly critical of functioning of domestic energy firms RIL and Cairn who are credited with biggest gas and oil discoveries, respectively. "In our submission, the CAG should consider carefully the import of its castigations and the fairness of its criticisms upon Indian industry," RIL wrote in the letter.

RIL and Cairn made huge discoveries between 2001 and 2005 "after decades of repeated failures, first by ONGC and OIL and then by international majors like Chevron and Shell". These discoveries change the outlook on the prospectively of Indian basins, it said in the letter.

RIL did not respond to ET's email queries. An official in the ministry of petroleum & natural gas said the government and its technical advisor, the Directorate General of Hydrocarbon, had told the auditor that many of its audit objections were not consistent with technical aspects of oil and gas exploration and production.