 "ONGC")
Oil and Natural Gas Corporation (ONGC) on Thursday said the Shah panel report on gas migration from its field in the Krishna-Godavari basin to the adjacent one of Reliance Industries had vindicated its stand on the issue.
Speaking on the report for the first time in public, D K Sarraf, chairman and managing director, said, “The Shah panel, as well as the consultant DeGolyer and MacNaughton (D&M), both agreed to ONGC’s version that gas has flown from ONGC’s field to RIL’s. Our apprehension regarding the issue has been confirmed by Justice Shah. The committee also confirmed that RIL has already produced a significant portion of gas.”
Government-owned ONGC also stated it was not aware about the migration in advance.
“It was only a couple of years back that we came out in public with this issue,” Sarraf added.
A one-man committee of former judge A P Shah had given a report last week.
Shah had asked the government to claim “restitution” from RIL for “the unjust benefit” received from the migration of gas, while it also stated ONGC has no right on the restitution and no locus standi to bring a “tortious claim against RIL for trespass/conversion since it does not have any ownership rights or possessory interest in the natural gas.”
The panel had also agreed to the findings of the report submitted by the US-based consultant D&M in November 2015, which stated that about 11.122 billion cubic metre natural gas had migrated to the RIL fields from ONGC’s idle fields.
“It was based on technical inputs that we were able to establish that gas has migrated. Moreover, the consultant was appointed jointly by both ONGC and RIL,” he said.
Shah had also stated RIL had knowledge about the possible migration in 2003, while ONGC, too, had prior understanding about the continuity way back in 2007 and it took up the matter only after six years.
It also recommended further inquiry into the subject of prior knowledge about migration by both the parties.
According to the Shah panel, there was no extra right for the contractor that enabled it to produce gas, regardless of its source.
It also highlighted that though RIL had the option to go for a joint development, it did not pursue such a step.
