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Reliance Industries seeks joint tech studies to resolve Gas dispute with Oil and Natural Gas Corporation

<p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">In a move seen as &quot;delaying tactics&quot;, Reliance Industries has proposed joint studies before an international expert is roped in to decide if its wells on KG-D6 block were drawing gas from neighbouring fields of ONGC.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">RIL and Oil and Natural Gas Corp (ONGC) had on March 28 agreed to appoint neutral international expert to decide if four wells drilled on boundary of KG-D6 block were drawing gas from neighbouring gas discoveries of the state-owned firm.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The two were to exchange list of international experts at the last meeting on April 15, but RIL proposed a joint technical team to do more studies before seeking third party help, sources with direct knowledge of the development said.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">ONGC, however, believes the issue can be resolved only by engagement of an international expert. Two subsequent meetings proposed on April 28 and May 2 could not take place as RIL sought deferment.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Another meeting is scheduled for this week, they said. While ONGC Chairman and Managing Director Dinesh K Sarraf could not be reached for comments, a source close to the company said RIL proposal was &quot;nothing but delaying tactics&quot;.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">A RIL spokesperson said, &quot;We are engaged in constructive dialogue with ONGC on all matters. The last meeting on the afore-mentioned subject was held just last month.&quot;</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">&quot;Given the geological complexities involved, the matter on hand can perhaps be settled by a third-party expert. We are awaiting the appointment of such an expert and we are confident that the matter will be expeditiously resolved to mutual satisfaction,&quot; he added. Sources said Sarraf had briefed the company board on March 24 about the likelihood of RIL drawing gas from ONGC&#39;s G-4 and KG-DWN-98/2 blocks.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">ONGC had approached the Directorate General of Hydrocarbons ( DGH) on the matter nine months back with a request to share production and well data of KG-DWN-98/3 or KG-D6 field for analysing if the reservoir of the neighbouring field has same and continuous gas pool.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">The company&#39;s Godavari Block (known as G-4) and NELP-I discovery block KG-DWN-98/2 are contiguous to RIL-operated NELP-I Block KG-DWN-98/3 (KG-D6). Sources said ONGC believes KT-1/D-1 gas find in block KG-DWN-98/2 and G-4 Pliocene gas find in Godavari Block extend outside the block boundaries into KG-D6.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">ONGC believes that RIL&#39;s D6-A5, D6-A9 and D6-A13 wells drilled close to the block boundary may be draining gas from G-4 field of Godavari block while the well D6-B8 may be draining gas from DWN-D-1 field of KG-DWN-98/2 block. RIL has maintained that there exist uncertainties with regard to the possibility of channel extension, sand continuity as well as the connectivity.</span></span></span></p> <p style="text-align: justify;"><span style="color:#696969"><span style="font-size:11px"><span style="font-family:arial">Source-On Request</span></span></span></p>