Financial Express: ONGC says tests show RIL drilled into its field

State-owned explorer ONGC’s latest tests at its 98/2KG Basin block, sources say, have confirmed its claim that gas from the PSU’s block has been drilled out by Reliance Industries (RIL), which operates the adjacent block 98/3 KG Basin.

In May 2014, ONGC had moved the Delhi High Court alleging that RIL had “cleverly and craftily exploited” gas from the PSU’s blocks in the Krishna-Godavari Basin totalling about 18 billion cubic metres (bcm) between 2009 and September 2013. At a price of $4.2 per million British thermal units, RIL’s revenue from alleged sales of ONGC’s 18 bcm of gas could be pegged at around $2.7 billion, although the PSU did not mention any specific figure in its petition. The court had issued the notice to all the parties concerned — RIL, the Directorate General of Hydrocarbons (DGH) and the petroleum ministry.

Sources told FE that ONGC has again conducted pressure tests at one of the four wells in the boundary area of the blocks. “The pressure has dropped by nearly 64% to 1,400 psi (pounds per square inch) now from earlier records of 3,900 psi. This clearly shows that gas has been taken out from the reservoir,” a senior official privy to the development, said.

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