ONGC’s demand for appointing expert in KG basin issue backed by regulator


The Directorate General of Hydrocarbons (DGH) has backed Oil and Natural Gas Corp’s demand for appointment of an international expert to assess if Reliance Industries Ltd (RIL) was drawing out any of its gas from the KG basin.

ONGC said that at least three wells drilled by RIL in the eastern offshore KG-D6 block are within “few hundred meters” of its gas fields and it fears the two may be sharing the same pool of reservoir. Since it has not yet begun producing from its side, it feels RIL’s wells may be pumping out its share of gas.

The regulator has asked RIL to immediately share data on the gas reservoir on its side of the block as well as production flows with ONGC, sources privy to the development said.

It also asked ONGC to share data based on which it had felt that RIL’s wells – D6-A5, D6-A9 and D6-B8 – in the KG-D6 block may be drawing gas from its gas pools called G4-2, G4-3 and D-1.
The regulator’s letter to RIL follows ONGC’s February 11 complaint to the Oil Ministry saying the Mukesh Ambani-run firm was unwilling to co-operate and was delaying the process of resolving the issue which it had raised over seven months ago.

“In view of significance of the issue and ONGC’s position that there is continuity of discoveries made by ONGC in its Godavari PML and KG-DWN-98/2 block and possible extension of reservoirs into KG-DWN-98/3 (KG-D6) block, RIL, the contractor of KG-DWN-98/3 block is reminded and advised to comply with the provisions of contract and fully cooperate with ONGC to resolve the concerns of ONGC,” the regulator wrote.

It asked both RIL and ONGC to submit a joint study report to DGH at the earliest.

Sources said RIL was also advised to consider ONGC’s proposal for resolving the issue through an independent study by engaging a third party.

ONGC fears that gas pool in its nomination block G4 (Godavari PML) and KG-DWN-98/2 extends into KG-D6.