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Shah panel seeks comments on ONGC gas migration to RIL fields

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Press Trust of India New Delhi
The AP Shah panel looking into migration of ONGC gas to Reliance Industries' fields has sought comments from stakeholders including the private firm's partner BP on the issue, and is looking at engaging an independent domain expert to assist it.

The Justice (retired) A P Shah Committee, constituted by the Oil Ministry to fix responsibility and compensation for natural gas from ONGC block migrating to RIL fields, has begun work and held one round of meeting, official sources said.

The one-man committee has sought written comments from Oil and Natural Gas Corp (ONGC), the Directorate General of Hydrocarbons (DGH), the Oil Ministry and BP on gas flowing from ONGC blocks in KG basin to neighbouring fields of RIL.
 

While BP has agreed to cooperate with the committee, the other partners in the KG-D6 block - RIL and Niko Resources of Canada, are boycotting it questioning its legality.

Sources said the panel is also looking at engaging a neutral domain expert to assist in understanding the complex issue and the report of US-based consultant DeGolyer and MacNaughton (D&M) that established 11.12 billion cubic meters of natural gas, worth over Rs 11,000 crore, had migrated from idling fields of ONGC to adjoining KG-D6 block of RIL.

An Oil Ministry source said the Shah Committee was set up under orders from the Delhi High Court, which had been petitioned by ONGC seeking compensation for its gas flowing to RIL blocks.

If RIL or Niko are aggrieved about the report of the Shah panel in the end, they have the option of telling the court of it. By not cooperating with the Committee, they are only trying to delay reaching an early settlement, the source said.

When reached for comments, a BP India spokesperson said, "We confirm informing the Committee of our willingness to cooperate."

D&M, which was appointed mutually by RIL and ONGC under orders from the Delhi High Court, in its November 30 report established that reservoirs in ONGC's KG basin blocks KG-DWN-98/2 (KG-D5) and the Godavari-PML are connected with Dhirubhai-1 and 3 (D1 & D3) field located in the KG-DWN-98/3 (KG-D6) Block of RIL.

RIL in a letter to the panel on December 31 wrote that "the Government of India can appoint a 'committee', or the government can deal with any issues on the dispute or for the dispute by constituting a committee."

"Furthermore, it is RIL's respectful submission that the Office Memorandum (of oil ministry that set up Shah panel) is apparently not rooted in any statutory power and is also contrary to the substantive as well as the dispute resolution provisions of the PSC," RIL wrote.

ONGC, on the other hand, is cooperating and wants the panel to fix compensation and penalty.
"While Mayawati exploits Dalits, SP commits atrocities on

them," he alleged, adding both cannot do any good and it is only BJP which can work for their uplift on its "sabka saath, sabka vikas" motto.

Shah also hit out at Congress vice president Rahul Gandhi, who is currently on 'Deoria to Dilli Kisan Yatra', alleging, "Rahul baba your family has ruled the country for 65 years... It is Congress which is responsible for farmers' plight...Had the party been real sympathiser of farmers their condition would not have been like this."

Terming Congress as "vote splitter", Shah alleged the party is nowhere in the race for power in the Assembly elections next year and it is in fray to help SP and BSP which had lent their support for 10 years at the Centre.

Recalling the massive support BJP got from Uttar Pradesh in the 2014 Lok Sabha elections, Shah said the Modi government is working to develop all sections of the society and mentioned various schemes being run by it.

"But if the state does not have a government which works for the people and the poor, all such schemes of the Modi government will not reach to the ground level..," the BJP national president alleged.

Informing that the fund allocation for the state "has been hiked by Rs 1,00,000 crore" by the Modi government, he asked the Chief Minister as to why it has not been properly utilised for development and said, "UP will also be developed but only BJP can do this."

He also raised the slogan "na sapa na basapa, abki baar bhajapa sarkar' (No SP, no BSP, next time BJP government)at the rally.

Referring to the law and order situation in the state Amit Shah claimed "only BJP government which can improve the situation here".

Maurya in his speech alleged, "The massive loot in BSP had frustrated the common workers...We left the party because of this...The workers of the BSP are totally fed up."

Meanwhile, Amit Shah is scheduled to visit Mathura on September 28 for the five-day long birth centenary celebration of BJP ideologue Deen Dayal Upadhyaya. The celebrations, which will start on September 25 will also be attended by Union Agriculture Minister Radha Mohan Singh among others.

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First Published: Jan 21 2016 | 7:28 PM IST

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