Shah panel to submit report on ONGC-RIL gas dispute by August 31

Government has extended by one month the tenure of A P Shah Committee looking into the dispute over natural gas migrating from state-owned ONGC's idle blocks in KG basin to neighbouring fields of Reliance Industries.

PTI| Last Updated: Aug 10, 2016, 23:29 PM IST

New Delhi: Government has extended by one month the tenure of A P Shah Committee looking into the dispute over natural gas migrating from state-owned ONGC's idle blocks in KG basin to neighbouring fields of Reliance Industries.

The Committee will now submit its report by August 31, Oil Minister Dharmendra Pradhan said today.

"Government constituted a single member committee comprising of Ajit Prakash Shah former Chief Justice of Delhi High Court on December 15, 2015 to look into the dispute between RIL and ONGC regarding ONGC blocks (KG-DWN-98/2 & Godavari PML) and RIL block (KG-DWN-98/3) in Krishna Godavari basin," he said in a written reply to a question in Rajya Sabha here.

The Committee was to submit its report by July 31.

"However, considering the volume of work involved and complexity of the issue, the Committee has sought extension till August 31, 2016 for submission of the report which has been agreed by the Government," he said.

The panel is looking into "acts of omission and commission" as well as compensation to ONGC.

"Terms of References (TORs) to the committee includes looking into the issue of gas migration and give its recommendations in this regard," he said.

Pradhan said the committee has conducted hearings and has taken written submission from all stakeholders.

"The next course of action will be decided by the government after getting the recommendations of the Committee," he said.

It has been asked to "quantify the unfair enrichment, if any, to the contractors of the adjacent block KG-DWN-98/3 (KG-D6) and measures to prevent future unfair enrichment to these contractors on account of gas migration."

It has also been asked to "recommend action to be taken to make good the loss to ONGC/government on account of such unfair enrichment to the contractors."

RIL has 60 per cent interest in KG-D6 block, while Niko holds 10 per cent stake. BP holds the remaining 30 per cent.

DeGolyer and MacNaughton (D&M), had in its November 30 report, established that reservoirs in ONGC?s Krishna Godavari basin KG-DWN-98/2 (KG-D5) and the Godavari-PML are connected with Dhirubhai-1 and 3 (D1 & D3) field located in the KG-DWN- 98/3 (KG-D6) Block of RIL.

It states that as much as 11.122 billion cubic meters of ONGC gas has migrated from Godavari-PML and KG-DWN-98/2 to KG-D6. Of the 58.68 bcm of gas produced from KG-D6 block since April 1, 2009, 49.69 bcm belongs to RIL and 8.981 bcm could have come from ONGC?s side, D&M said.