Report on dispute between ONGC and RIL

Report on dispute between ONGC and RIL

The Minister of State (I/C) for Petroleum & Natural Gas ShriDharmendraPradhan informed the RajyaSabha in a written reply today that Justice (Retd.) A.P. Shah Committee has submitted its Report on disptue regarding oil and gas blocks in KG Basin on 28th August, 2016. The Committee had in its Report concluded inter-alia that there has been unjust enrichment to the contractor of the block KG-DWN-98/3 due to production of the migrated gas from ONGCs blocks KG-DWN-98/2 and Godavari PML. The details of the Report as well as the recommendations of the Committee have also been uploaded on this Ministrys website.

The Government has accepted the recommendations of the Committee and consequently, it has been decided by the Government to claim restitution from the contractor for the block KG-DWN-98/3 for the unjust benefit received and unfairly retained. A notice in this regard has been issued by the Ministry on 3rd November, 2016. Government through this notice has directed RIL to remit an amount of USD 1,552,071,067 (computed provisionally) being net amount of restitution receivable along with interest upto 31.3.2016 and USD 174,905,120 towards the revised additional cumulative Profit Petroleum receivable upto 31.3.2016 to the Government within 30 days from the date of receipt of the notice.

RIL vide its Notice of Arbitration dated 11.11.2016 has invoked arbitration disputing the claim of the Government of unjust benefit and restitution claimed in the aforesaid Ministrys notice dated 3.11.2016.

https://www.khabarindia.in/report-on-dispute-between-ongc-and-ril/