The Production Sharing Contract (PSC) mandates producers to sell crude oil at the best available market rate, to ensure highest profit petroleum and royalty to the government.

Oil Minister Dharmendra Pradhan had last month told the Parliament that his ministry has disallowed RIL from recovering $2.37 billion invested to develop offshore Krishna Godavari gas fields as output has fallen drastically and was way below the promised volumes in past four years.

The violations date back to 2007-09, when RIL had issued 120 million warrants to entities in the promoter group on a preferential basis.

In the June quarter of this year, Singapore GRMs declined $0.4 a bbl sequentially to $5.8 a bbl. RIL's GRMs, too, declined from $9.3 a bbl in the March quarter to $8.7 a bbl in the June quarter but were higher than the previous year's $8.4 a bbl.

The funds will be used by Mukesh Ambani's company to refinance its costly debt and to roll out telecom and data services. Reliance joins a number of large companies, including the Essar and Adani groups, which are raising loans abroad as interest rates in India remain high.

RIL has already spent close to Rs 33,000 crore in its telecom venture, expected to be launched early next year.

Refining margins at $8.7/bbl marginally beat est of $8.6/bbl, driving Ebit of R37.7 bn (+28% y-o-y, 3% above the rest) But petchem disappointed with Ebit of R18.9 bn (-10% quarter-on-quarter) well below estimates.

An indirect subsidiary of Reliance Life Sciences, it had invested Rs 6,500 crore ($1.7 billion at the then foreign exchange rates) in 2007-08 through some exotic instruments in Reliance Gas Transportation, Relogistics Infrastructure, Reliance Ports and Reliance Utilities. The investments were considered to be the largest foreign direct investment (FDI) from Singapore.

State-owned fuel retailers buy diesel from private refiners as their own production is insufficient to meet domestic demand.