US-based consultant D&M has submitted its final report on the gas dispute between ONGC and Reliance Industries, establishing that natural gas worth over Rs11,000 crore has migrated from idling KG fields of the state-owned firm to the adjoining KG-D6 block.
DeGolyer and MacNaughton (D&M) has submitted its final report to the Directorate General of Hydrocarbons (DGH), a senior Government official said here.
“The report more-or-less reiterates what D&M had stated in the draft report that some gas had indeed migrated from ONGC’s Krishna Godavari basin blocks to RIl’s KG-D6 fields”, he said.
The Government, he said, will now examine the report and decide on how and to what extend should ONGC be compensated for its gas being produced by RIl.
“The Supreme Court had in its order (on ONGC petition on its gas being produced by RIl) stated that government will have to in six months from the date of receipt of D&M report decide on addressing ONGC contention. That we will do”, he said.
D&M, in its report, established that reservoirs in ONGC’s Krishna Godavari basin KG-DWN-98/2 (KG-D5) and the Godavari Producing Mining lease (PMl) are connected with Dhirubhai-1 and 3 (D1 & D3) field located in the KG-DWN-98/3 (KG-D6) Block of RIl.
It states that as much as 11.122 billion cubic meters of ONGC gas has migrated from Godavari-PMl and KG-DWN-98/2 to KG-D6.
Of the 58.68 bcm of gas produced from KG-D6 block since April 1, 2009, 49.69 bcm belongs to RIl and 8.981 bcm could have come from ONGC’s side, D&M said. At gas price of $4.2 per million British thermal unit, the volume of gas belonging to ONGC which RIl has produced comes to $1.7 billion (Rs11,055 crore).