 "RIL shares dip as TV report says consultant report hinted at extraction of ONGC gas")
The stock hit a low of Rs 886.60 at 3:15 pm after tumbling from its intra-day high of Rs 915.00. An RIL spokesperson said the company has not yet received any draft report from D&M.
The consultant is expected to submit a report soon. The report will be a key input in the ongoing dispute between the two large oil companies -- evaluating the possible continuity of channel and reservoirs across the block boundaries and to estimate volumes of gas in case reservoir continuity is established.
The media report said the draft is likely to reveal that 12-18 billion cubic meter (bcm) gas was extracted by RIL from the ONGC area, and for that it (RIL) might have to pay up to Rs 12,000 crore as compensation to ONGC. The report also said the government is likely to seek legal opinion on compensation from RIL to ONGC and the oil ministry will examine the draft report within next week. However, an oil ministry spokesperson denied having any knowledge of the draft report being filed to the ministry.
ONGC had in May last year filed a petition in the Delhi High Court alleging RIL may have drawn natural gas from its fields that sit next to the private sector explorer's KG-D6 block in the Krishna-Godavari basin. It made the central government as well as petroleum ministry's technical arm, the Directorate General of Hydrocarbons (DGH), respondents in the case. RIL contested the claim.
Last month, the court disposed of ONGC petition asking the company to wait for six months for the government to take action on the consultant's report after its is submitted. The court also allowed ONGC to file a fresh petition in case the government fails to take action. The consultant was appointed after the DGH stated the issue should be resolved through an independent study by engaging a third party.
