RIL, ONGC share gas fields: D&M

New Delhi: A reputed international consultant D&M is believed to have opined that some natural gas from ONGC's idling Bay of Bengal gas fields may have flown out through the adjoining, connected KG-D6 fields of Reliance Industries.

DeGolyer and MacNaughton (D&M) in its preliminary observations stated that ONGC's Godavari Block (known as G-4) is contiguous to RIL-operated Block KG-DWN-98/3 (KG-D6), sources privy to the development said.

The reservoir in the two neighbouring blocks are connected, which means there exists one big gas resource several meters below sea bed and does not recognise man-made boundaries that demarcate blocks of ONGC and RIL.

While RIL did not comment on the report as it had not received any report from D&M, ONGC Chairman Dinesh K Sarraf did not return calls made for comments.

Sources said D&M, which was jointly appointed by ONGC and RIL to find if the neighbouring fields are connected, is of the opinion that there is no unconnected area in G-4 -- ie there exists no independent gas reservoir in the ONGC block and all the resources are shared with KG-D6.

ONGC had in 2013 claimed that RIL had deliberately drilled wells close to the common boundary of the blocks and that some gas it pumped out was from its adjoining block.

RIL has maintained that it had followed the Production Sharing Contract (PSC) in letter and spirit and done no wrong. It has drilled all wells within its boundary walls.

Sources said D&M has had seven sittings with officials of RIL and ONGC as well as the Directorate General of Hydrocarbons (DGH), the latest one being this week in Dallas, US, when it studied data of the two blocks and reservoir pressure tests conducted by ONGC last year.

D&M, they said, in the preliminary observations stated that some 11.9 billion cubic meters (bcm) of gas belonging to ONGC may have been produced from RIL's KG-D6 field.

According to D&M, RIL had drawn 58.67 bcm of gas from the wells upto March 31, 2015, out of which 11.9 bcm may belong to ONGC.

It is likely to submit its report on the issue by next month. And as per Supreme Court order the Oil Ministry will have six months from the date the report is submitted to decide if ONGC is entitled to any compensation from RIL.

Oil and Natural Gas Corp (ONGC) believes the KT-1/D-1 gas find in its Krishna Godavari block KG-DWN-98/2 (KG-D5) and G-4 Pliocene gas find in Godavari Block extend outside the block boundaries into KG-D6.

According to ONGC, RIL's D6-A5, D6-A9 and D6-A13 wells drilled close to the block boundary may be draining gas from the G-4 field while the D6-B8 well may be draining gas from DWN-D-1 field of KG-DWN-98/2 block.

D&M has established connectivity between G-4 and KG-D6 but has so far not said anything on connectivity with KG-D5, sources said.