CON­SUL­TANT’S RE­PORT WILL DE­TER­MINE FU­TURE COURSE OF AC­TION IN ONGC-RIL GAS CASE: D K SAR­RAF

Resource Digest - - MINING -

The Delhi high court last week dis­posed of a pe­ti­tion by Oil and Nat­u­ral Gas Cor­po­ra­tion (ONGC) in a case where the state-run ex­plorer had al­leged nat­u­ral gas from two of its blocks in the KG basin off the Andhra coast KG-DWN-98/2 and Go­davari PML - might have been ex­ploited by Reliance In­dus­tries (RIL). The court has asked the par­ties to wait for the in­de­pen­dent ex­pert re­port to be given in Oc­to­ber and al­lowed ONGC to ap­proach the court again if the gov­ern­ment does not act within six months of the sub­mis­sion of the re­port. Dur­ing an me­dia in­ter­ac­tion fol­low­ing the 22nd AGM of the com­pany, ONGC Chair­man and Man­ag­ing Di­rec­tor D K Sar­raf spoke in de­tail about the case. Edited ex­cerpts:

WHAT IS ONGC'S STRAT­EGY IN THIS CASE? WHAT HAP­PENS IN CASE THE EX­PERT RE­PORT ES­TAB­LISHES RESER­VOIR CON­TI­NU­ITY?

We had an ap­pre­hen­sion in March 2014 that some of the reser­voir on our side might be ex­tend­ing to the block of Reliance side (G-DWN-98/3 or KG D6). And, some of the gas on our side might have been pro­duced by RIL. The rest of the case you al­ready know. The court has now de­cided. A con­sul­tant was ap­pointed by ONGC and RIL to­gether, un­der the guidance of the DGH (di­rec­tor gen­eral of hy­dro­car­bons). That con­sul­tant's work is still on. That re­port is ex­pected to come at some time in Oc­to­ber. When the re­port does come, we would know whether our ap­pre­hen­sion is right or not. In case our ap­pre­hen­sion is right, the court has ad­vised the gov­ern­ment that they should take suit­able de­ci­sion within six months. So, now based on the con­sul­tant re­port, the gov­ern­ment would take a de­ci­sion.

WOULD YOU BE WILL­ING TO GO FOR JOINT DE­VEL­OP­MENT IN CASE THE CON­SUL­TANT RE­PORT ES­TAB­LISHES CON­TI­NU­ITY OF RESER­VOIRS?

All of this will be putting the cart be­fore the horse. We do not know what sort of re­port would come and what would be the gov­ern­ment's view on the re­port, etc. So, all th­ese things would need to be seen but what­ever we de­cide will be in the in­ter­est of ONGC and the na­tion.

A CON­SUL­TANT WAS AP­POINTED BY ONGC AND RIL TO­GETHER, UN­DER THE GUIDANCE OF THE DGH (DI­REC­TOR GEN­ERAL OF HY­DRO­CAR­BONS). THAT CON­SUL­TANT’S WORK IS STILL ON. THAT RE­PORT IS EX­PECTED TO COME AT SOME TIME IN OC­TO­BER

YOU WON'T BE ABLE TO DE­VELOP CLUS­TER-1 UN­LESS THIS DIS­PUTE IS SORTED OUT BE­CAUSE THE G4 DIS­COV­ERY IS PART OF CLUS­TER-1. IS THAT COR­RECT?

There is no dis­pute. We had an ap­pre­hen­sion that the two blocks have a reser­voir with con­ti­nu­ity. That mat­ter is with the con­sul­tant which has been jointly ap­pointed un­der the su­per­vi­sion of the reg­u­la­tor. Clus­ter-1's as­sess­ment of re­sources was done be­fore this ap­pre­hen­sion. And the re­sults of the as­sess­ment came be­fore the pro­duc­tion from the other side started. Now, we do not know and we would need to see how much of re­serves are there. All th­ese facts would come from the con­sul­tant re­port. So, the re­port of the con­sul­tant is go­ing to be a very im­por­tant doc­u­ment to de­cide the course of ac­tion be­tween us and Reliance as well as the fu­ture course of ac­tion on Clus­ter-1.

IF THE RESER­VOIRS ARE NOT FOUND TO BE CON­NECTED, YOUR EN­TIRE AR­GU­MENT WILL FALL APART...

We would need to see whether the reser­voirs are con­nected or not. To­day, it is un­fair to say any­thing on this mat­ter as an ex­pert is look­ing into it.

D K SAR­RAF, CHAIR­MAN AND MAN­AG­ING DI­REC­TOR, ONGC

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.