Ambani gas row: Chronology
Following is the chronology of events surrounding the dispute over supply and pricing of gas from Reliance Industries` eastern offshore KG-D6 fields to Reliance Natural Resources Ltd (RNRL).
New Delhi: Following is the chronology of events surrounding the dispute over supply and pricing of gas from Reliance Industries` eastern offshore KG-D6 fields to Reliance Natural Resources Ltd (RNRL):
February 1999: Reliance Industries (undivided) and Niko Resources of Canada win Krishna Godavari (KG) basin deepsea block KG-DWN-98/3 (KG-D6) in India`s first licensing round (NELP-I).
April 2000: RIL-Niko sign Production Sharing Contract (PSC) for KG-D6 with the Government.
October 2002: RIL makes huge gas finds in the block KG-D6; names them Dhirubhai-1 and 3.
September 2003: State power utility NTPC Ltd floats global tender for sourcing 12 million standard cubic meters a day of natural gas/LNG to fuel expansion projects at Kawas and Gandhar in Gujarat.
June 2004: Reliance Energy signs pact with Uttar Pradesh for world`s largest gas-based power plant with a capacity of 3,500 MW at Dadri near Delhi.
June/July 2004: RIL wins NTPC tender quoting USD 2.34 per million British thermal unit price for KG-D6 gas.
June 18, 2005: Memorandum of Understanding to reorganise RIL signed between brothers Mukesh and Anil Ambani. Anil resigns as joint managing director. While Mukesh gets energy and petrochemical business, Anil gets power, financial services
and telecom business.
August 2005: Ambani brothers sign non-compete pact. RIL board approves scheme of de-merger.
December 2005: NTPC moves Bombay High Court seeking RIL to `perform` the bid it had made in its gas supply tender.
January 10, 2006: RIL Board approves the draft Gas Sale Master Agreement (GSMA) to be signed with RNRL for sale of gas on terms decided in the family MoU.
January 12, 2006: The board of directors of RIL approve pact that calls for 28 mmscmd of gas to be supplied to Anil Ambani Group and up to 40 mmscmd if the contract with NTPC does not materalise.
July 26, 2006: Petroleum Ministry rejects RIL`s proposal to sell Reliance Natural Resources Ltd a minimum of 28 million standard cubic meters per day (mmscmd) of gas from D6 field for USD 2.34 per million British thermal unit (mBtu)
November 7, 2006: RNRL files a case against RIL in the Bombay high court
May 3, 2007: Ad-interim relief granted to RNRL. RIL restrained from creating any third party interest for 40 mmscmd (28 mmscmd claimed by RNRL and 12 mmscmd offered in
September 13, 2007: Empowered group of ministers (EGoM) approves RIL`s gas pricing formula with minor changes. The price for first five years fixed at USD 4.20/MMBtu
October 2007: EGoM sets gas distribution priorities with
first preference to existing fertilizer, cooking gas, power
and steel unit
January 30, 2009: Bombay high court lifts stay on sale of
gas produced from KG-D6 block, allowing it to be sold to
buyers as per Govt`s Gas utilization policy at USD 4.20/MMBtu
March 2009: Government finalizes gas allocation to
fertilizer and power sectors
June 15, 2009: Bombay High Court instructs RIL and RNRL to
draft an agreement that gives gas to RNRL as agreed upon in
July 4, 2009: RNRL moves Supreme Court
July 5, 2009: RIL moves SC
July 17, 2009: Government files writ petition seeking to
declare that part of the Ambani family pact that deals with
gas supplies as null and void
October 20, 2009: Supreme Court begins hearing the cross
November 4, 2009: Justice Raveendran recuses himself from
December 18, 2009: Three-judge bench headed by Chief
Justice KG Balakrishnan reserves judgement on the case
May 8, 2010: Supreme Court delivers its verdict.