ONGC, RIL look for expert to end gas row

Public sector upstream oil giant ONGC and Mukesh Ambani-led Reliance Industries Ltd (RIL) are working on a proposal to appoint a mutually acceptable international expert to resolve the dispute over their Krishna Godavari basin gas fields being inter-connected.

ONGC claims that gas from its field in the KG basin is being drawn away through three wells drilled by RIL on the boundary of the adjoining KG- D6 block off the Andhra coast. ONGC has pointed out that these wells are connected to its fields as they are situated only a few hundred meters away. However, RIL disputes ONGC's contention.

A senior oil ministry official confirmed that the two firms have now decided to appoint a reputed global consultant to study data on both sides.

ONGC and RIL will soon discuss their list of preferred consultants to reach a consensus on a common name.

Also, the terms of reference for the expert opinion would be finalised jointly by the two companies.

The Directorate General of Hydrocarbon ( DGH) had asked RIL to share data on the gas reservoir on its side of the block as well as production flows with ONGC. 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 KG- D6 block- may be drawing gas from its gas pools called G4- 2, G4- 3 and D- 1.

ONGC fears that gas discoveries in its nomination block G4 ( Godavari PML) and Block KG- DWN- 98/ 2 ( KG- D5) extends into RIL's KG- DWN- 98/ 3 or KG- D6 block.

Sources said DGH will take a call on the issue of reservoir connectivity once the joint study is completed.

The public sector company had informed the DGH that RIL's wells D6- A5, D6- A9 and D6- B8 have been spudded on the extension of G4- 2, G4- 3 and D- l pools of ONGC's adjoining gas field.

As these pools are extending across both the blocks, there is possibility that pools of KG- DWN- 98/ 2 and G4 are being drained through wells drilled in D- 6 block, as these wells are drilled close to/ on block boundary, ONGC had further state in a letter to DGH.

Courtesy: Mail Today