KG basin gas row: Centre’s shocker to RIL

kg-basin-gas-rowThe Union government has sought $1.55 billion from Reliance Industries Limited (RIL) and its partners for drawing natural gas belonging to state-owned ONGC in the Krisna Godavari (KG) basin over the last seven years.

As much as 11.122 BCM of ONGC gas had migrated from its Godavari-PML and KG-DWN-98/2 blocks to the adjoining KG-D6 of RIL between April 1, 2009 and March 31, 2015. At prevailing prices, the gas was worth Rs. 11,000 crore.

The Ministry of Petroleum and Natural Gas has sent a notice to RIL seeking the compensation, sources privy to the development said, according to a report by The Hindu.

The Justice A.P. Shah Committee, in a report presented to the Ministry on August 30, felt that RIL should pay the government for the natural gas it had drawn from an adjacent block of ONGC in the KG basin of the Bay of Bengal in the past seven years.

In the report, the Committee said the Mukesh Ambani-run firm should pay for the gas that had migrated or seeped from ONGC blocks into its gas fields.

“RIL’s action of producing and selling gas migrated from ONGC block is unjust enrichment,” the report said, adding that over 11 billion cubic metres of gas had flowed from the ONGC block to RIL’s fields between April 1, 2009 and March 31, 2015. Of this, RIL had produced about 9 billion cubic metres (BCM).

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