Oil Min seeks expansion of legal team for gas dispute case

The Petroleum Ministry has sought expansion of the legal team that is to argue the government's stand on the gas dispute between the Ambani brothers before the Supreme Court beginning next week.     

"We wrote to the Law Ministry last week seeking strengthening of the legal team with appointment of more lawyers," a senior oil ministry official said.     

ASG Mohan Parasaran currently represents the government in the dispute over the quantities and price committed by Mukesh Ambani-led Reliance Industries in a 2005 family agreement for supply of natural gas to a company run by younger brother Anil Ambani.     

The government has filed a Special Leave Petition in the apex court seeking to become party to the dispute and has contended that national resources cannot be appropriated through private family arrangements and it alone holds the right to approve rates and decide on customers keeping national priorities in mind.     

The official said one more ASG, besides 3-4 junior lawyers, have been sought to "substantially increase" the strength the legal team. "Parasaran stays on the team and the increase in number has been sought with his approval."   

Industry sources said it was being debated if SG Gopal Subraminum may also included in the team.     

Anil Ambani Group has filed a petition in the Supreme Court seeking natural gas from RIL at rates 44 per cent lower than the government approved price. More

The Mukesh Ambani-led firm, too, has moved a cross-appeal saying it cannot violate the Production Sharing Contract (PSC) for the fields that provides for government role in approving the price and formulating a Gas Utilisation Policy.     

The official said the draft of the replies of the petitions filed by RIL and Anil Ambani Group firm Reliance Natural Resources Ltd (RNRL) was ready and was being discussed with the Law Ministry. "It will be filed in next few days."     

RNRL is seeking a minimum 28 million standard cubic meters per day or more than one-third of the peak output from RIL's eastern offshore KG-D6 fields, at $2.34 per million British thermal unit. This rate is 44 per cent lower than the $4.20 per mmBtu price approved by the government for KG-D6 gas in September 2007.     

The government has allocated the initial 40 mmscmd of output from KG-D6 among power, fertiliser, steel and LPG units, which are buying the fuel at the approved rate of $4.20 per mmBtu.     

RIL can produce about 65 mmscmd gas but is forced to keep the output at just over 40 mmscmd in absence of government not nominating buyers for additional gas. Output is slated to touch peak of 80 mmscmd before the year end.