Thursday, 24 July 2014

Independent Agency finalized to look into issue of continuity of blocks of gas reservoirs

In May, 2014, ONGC filed an extra-ordinary writ petition in Delhi high court against Union of India, DGH and RIL.


The Minister of State (I/C) in the Ministry of Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that ONGC, in July 2013 has stated that the wells drilled in blocks KG-DWN-98/3 by RIL in the vicinity / on boundary of ONGC’s nomination Godavari PML and NELP-I Block KG-DWN-98/2 may be draining gas from ONGC’s gas reservoirs. These ONGC’s blocks, viz-a-viz, PML (Godavari PML – Nomination Blocks) and KG-DWN-98/2 (NELP-I Block) are located in deep water, and contiguous to RIL operated block KG-DWN-98/3. Both ONGC and RIL have made hydrocarbon discoveries in their respective blocks. While RIL is producing gas from its block since 2009, ONGC is yet to start production from its block.
ONGC wrote a letter to DGH in July 2013 that E&P data of KG-DWN-98/3 may be provided to ONGC for analyzing field continuity of the pools. Several meetings and dialogues between ONGC and RIL were held to resolve the dispute regarding continuity of reservoirs. DGH asked RIL to share its E&P data with ONGC which was provided by RIL to ONGC. Similarly, ONGC also shared its technical data with RIL.
In May, 2014, ONGC filed an extra-ordinary writ petition in Delhi high court against Union of India, DGH and RIL with a request to appoint an independent agency to establish the continuity of reservoirs between KG-DWN-98/2 block operated by ONGC and KG-DWN-98/3 block operated by RIL and to estimate the volume of gas and also for working out gas balancing between the above reservoirs if found to have continuity.
Subsequently, ONGC and RIL, under the supervision of DGH, has finalized an independent agency to establish if the reservoirs between KG-DWN-98/2 block operated by ONGC and KG-DWN-98/3 block operated by RIL have continuity. Letter of award has been issued to the independent third party on 03.07.2014. 

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