Oil and Natural Gas Corp (ONGC) has sought permission from the Government to study the data of Reliance Industries Ltd’s (RIL) KG-D6 block off the Andhra coast, as it fears the Mukesh Ambani-led firm may be drawing gas from a reservoir connected to an adjacent block operated by the state-run explorer.
While ONGC officials have maintained that the request made to the Directorate General of Hydrocarbons (DGH) does not point fingers at any other contractor on drawing hydrocarbon from its area, insiders told Business Line an internal assessment indicated some shift in ONGC’s reservoir.
This has prompted the company to seek permission to study the data of the neighbouring block.
Seeking information about adjacent blocks for geo-scientific purpose is a common global practice, as it helps in better understanding of the area, an ONGC official said. In fact, domestic operators such as RIL have also done so. Besides, the production sharing contract also allows contractors to access data in the neighbouring blocks after seeking DGH nod.
A source in the DGH said: “We are looking into ONGC’s request.” When contacted, an RIL spokesperson said: "We are not aware of any such letter from ONGC.”
Asked about reports that RIL has drawn gas from ONGC’s block, the spokesperson said: “Any such allegations are completely baseless."
Incidentally, in July, ONGC signed a memorandum of understanding (MoU) with RIL to explore the possibility of sharing the latter’s infrastructural facility in the East Coast. The MoU aims at working out the modalities for sharing infrastructure, identifying additional requirements as well as firming up the commercial terms.
This was to minimise ONGC’s initial capital expenditure and also expedite its field development, resulting in early monetisation of its deep water fields adjacent to the fields of RIL.
The companies intend to enter a formal agreement after conducting a joint study, which will be spread over nine months.