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JUL 24 2014

Gas row: Oil & Natural Gas Corporation and Reliance Industries pick independent agency

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 24th JUL 2014

Oil & Natural Gas Corporation (ONGC) and Reliance Industries (RIL) have selected an independent agency to verify the state explorer's allegation that RIL may be drawing gas from acommon reservoir in the two companies' adjoining blocks in the KG Basin, said oil minister Dharmendra Pradhan on Wednesday. ONGC's blocks have a common boundary with Reliance's KG-D6 block.

Reliance has strongly denied the allegation, but the state-run company has stuck to its stand and even filed a case against the oil ministry in the Delhi HC, alleging that the government had turned a blind eye to the matter.

"Letter of award has been issued to the independent third party on July 3, 2014," Pradhan told Parliament. He did not name the agency but government and industry sources said RIL and ONGC have jointly selected DeGolyer and MacNaughton (D&M), which had provided consultancy services to both companies in the past.

D&M's selection has been endorsed by the oil ministry's technical arm, the Directorate General of hydrocarbons (DGH). An official statement said the consultant was appointed after ONGC filed an "extraordinary" writ petition in the Delhi High Court against Union ofIndia, DGH and RIL in May this year. ONGC requested the court to appoint an independent agency to establish if there was continuity of reservoirs between blocks of the two companies and to estimate the volume of gas. Also the agency would have to work out how much gas could be allocated to each reservoir, which the statement refers to as "gas balancing" if continuity was established.

Tags

Delhi Gas Natural Gas Oil ONGC Reliance Industries limited Directorate General of Hydrocarbons Indus India

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