ONGC-RIL row: Tech consultant report set to be delayed

The consultant, US-based DeGolyer and MacNaughton, today conducted its final meeting with the representatives of the two companies and the govt

The much-awaited report of the technical consultant on the dispute related to natural gas reserves in the Krishna-Godavari (K-G) basin between India’s largest oil companies  — state-owned Oil and Natural Gas Corporation (ONGC) and Reliance Industries Ltd (RIL) — is set to be delayed by a few weeks to a month.

The consultant, US-based DeGolyer and MacNaughton (D&M), on Tuesday conducted its final meeting with the representatives of the two companies and the government. “The meeting has been on since yesterday (Monday) in Dallas. This would be followed by preparation of a draft report, which would be circulated among the parties involved for comments. The final report would come only in November,” said a person close to the development.

ONGC had in May last year filed a petition in the Delhi High Court alleging RIL might have drawn natural gas from its fields that sit next to the private sector explorer’s KG-D6 block in the K-G basin. It made the Central government as well as petroleum ministry’s technical arm Directorate General of Hydrocarbons (DGH) respondents in the case. RIL contested the claim. The oil ministry had last year told the high court that the allegations levelled against it by ONGC were ‘frivolous’ and the government had taken all necessary steps to resolve the national explorer's complaint. It also said ONGC “never raised any issue on connectivity of reservoirs or channels” ever since it was granted mining lease of the Godavari PML Block (G-4) in 2008 and even when RIL started production from KG-D6 in April 2009.

Last month, the court disposed of the ONGC petition, asking the company to wait for six months for the government to take action on the consultant’s report after its is submitted. The court also allowed ONGC to file a fresh petition in case the government fails to take action. The consultant was appointed after the DGH stated the issue should be resolved through an independent study by engaging a third party.

D&M was asked to prepare a report evaluating the possible continuity of channel and reservoirs across the block boundaries and to estimate volumes of gas in case reservoir continuity is established. The consultant has held at least seven meetings with the stakeholders since September last year, analysing data and discussing key aspects of the issue on the gas reserves in the two adjoining blocks.