Justice AP Shah Committee submitted its on the compensation Reliance Industries should pay to ONGC for producing state-run firm’s gas for the past seven years.
Report contains not just the compensation to be paid for ONGC’s gas migrating to adjacent KG-D6 block of RIL in the Krishna Godavari basin, but also recommendations for avoiding such disputes in future.
As much as 11.122 billion cubic meters of ONGC gas had migrated from its Godavari-PML and KG-DWN-98/2 blocks to adjoining KG-D6 of RIL between April 1, 2009 and March 31, 2015.
At prevailing prices, the gas was worth Rs 11,000 crore. While ONGC’s reservoirs have almost emptied, RIL continues to produce gas from D1&D3 fields in KG-D6 block, some of it being of ONGC.
The Committee has also recommended future course of action for the ministry.