Reliance Industries fires fresh salvo at ONGC, denies gas theft allegation

May 23 2014, 23:15 IST
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SummaryReliance Industries today hit out at Oil and Natural Gas Corp (ONGC) for suing it over KG gas dispute...

Godavari Block (known as G-4) and New Exploration Licensing Policy (NELP-1) discovery block KG-DWN-98/2 are contiguous to RIL-operated NELP-1 Block KG-DWN-98/3 (KG-D6).

"As per our data, some of the resources is common to our block and RIL. There is apprehension that some of wells (of RIL) on the boundary of the block may be drawing gas from our fields," Sarraf had said on May 20.

RIL said ONGC approached it in mid-2012, to examine the possibility of sharing its KG-D6 infrastructure in order to commercialise some of the discoveries in KG blocks and an MoU was signed in July 2013.

"We continue to see ONGC as a valued industry peer, worthy of collaboration, to whom we will continue to provide assistance to help develop its discoveries and start production of valuable gas locked beneath the Indian Ocean to the benefit of the people of India," the statement said.

RIL said in August 2013, that ONGC raised the issue of possible connectivity between reservoirs in RIL and ONGC blocks through the Directorate General of Hydrocarbons (DGH).

"Since then, as per international practice, ONGC and RIL have been engaged in the process of appointing an independent agency to investigate the issue of possible reservoir connectivity across the blocks," it said.

The officials of the two firms had met on May 9 and exchanged drafts regarding the scope of work to be assigned to such agency.

On May 23, the parties again met and finalised the enquiry notice to be sent to four agreed international expert agencies. It was decided to issue the Enquiry Notice on May 26, 2014.

RIL said Cairn made the first discovery in KG-DWN-98/2 (KG-D5) Block in 2001. RIL's D1-D3 discoveries in KG-DWN-98/3 (KG-D6) Block occurred in October 2002.

ONGC then farmed into Cairn's KG-D5 Block and took over Operatorship in 2005. ONGC, which had been operating the G4 nomination block since 1997, made its first Pliocene discovery in this block in early 2004.

"However, while RIL had brought its D1-D3 discoveries into commercial production by April 2009 after a mere six and a half years from discovery, ONGC is yet to commence development of any of the discoveries in its two blocks," it said.

All wells drilled by RIL during the development of D1-D3 (in KG D6) are well within the block boundaries and approved in accordance with the PSC by the Management Committee consisting of Government representatives, who

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