 "Keeping KG alive took Rs 4.5k cr for RIL, BP, Niko")
British oil giant BP has said it will cooperate in the proceedings of the single-member judicial commission set up by the government to probe the ongoing gas row between Mukesh Ambani-owned Reliance Industries (RIL) and state-owned Oil and Natural Gas Corporation (ONGC).
BP told Business Standard in a statement that it confirms informing the commission, headed by M B Shah, former chief justice of the Delhi High Court, of its willingness to cooperate. The statement fuelled speculation about a rift between BP and RIL, which has refused to participate in the panel proceedings.
“It is but natural occasionally to face issues in our businesses. The key, though, is to resolve them with the objective of delivering mutual value. Be it through a focused discussion or a lawful engagement, we aim to work with governments in a transparent manner to deliver this value,” BP said.
The London-headquartered firm, which had bought a 30 per cent stake in RIL-operated KG-D6 field, added that in India, too, it remains committed to the objective of “delivering mutual value for the country and its citizens, and for BP”. BP has objected to some terms of reference of the panel that amount to arguing that an illegal activity has taken place, according to sources.
One of the terms of reference of the Shah commission is to quantify “unfair enrichment”, if any, to the contractors of the KG-D6 block and to suggest measures to prevent further “unfair enrichment” on account of gas migration. A senior official close to the development, however, said it was crucial to remember the expression “if any” in this context.
Both RIL and Canada-based Niko Resources have objected to the oil ministry’s intervention in the matter by setting up a commission and have refused to participate in the panel’s discussions.
According to sources, ONGC has said RIL’s move to not participate does not mean anything since the discussions within the panel’s meetings will, in any case, be known to the private firm through its partner.
Last month, the oil ministry appointed the panel to look into the issue, following an order of the Delhi High Court that heard ONGC’s petition alleging illegal gas evacuation by RIL from its adjacent blocks. The court had also asked ONGC to give the government six months, ending June 1, to take action on a report of global consultant DeGolyer and MacNaughton (D&M ) on the issue. D&M had said in its report that around 11.2 billion cubic metres of natural gas migrated across the boundary of the two blocks owned by RIL and ONGC.
