D&M submits final report on ONGC-RIL row.

US-based consultant DeGolyer and Mac-Naughton (D&M), in its final report has confirmed that oil and gas blocks owned by ONGC and Reliance Industries in the Krishna-Godavari Basin are connected and that over 11 billion cubic metres of gas migrated from the state firm's block to the one being operated by the private explorer.

D&M, appointed to examine ONGC's allegations of drainage of gas by RIL, submitted its final report to DGH on November 30. The report, accessed by ET, said: 'The FFRM (full field reservoir model) results indicated connectivity and continuity of the reservoir, across the blocks operated by ONGC and RIL.' According to the report, total production of gas till March 2015 was 58.64 bcm, of which over 8.2 bcm originated from blocks allotted to ONGC — out of the total migration of 11.2 bcm.

Estimates of production and volume of the gas which migrated were based on the history of both blocks operated by ONGC and RIL. And that the migration happened when recovery was made by RIL. ONGC has set up a technical team to examine the report, which shall now be submitted to the petroleum ministry.


ET has reviewed the over 600-page report, which said, migration of gas was on account of production of gas. This production was by RIL as ONGC is yet to start commercial production in its blocks, according to the report.

'RIL is producing gas from the D1, D3 gas fields since 2009, ONGC is yet to start development in its above mentioned block,' the report said. Sources in RIL claimed that D&M has not ascribed reserves to ONGC blocks, as the resources were not viable nor has ONGC carried out any development plan. As a consequence of this inaction, gas from its areas migrated, and the country benefitted from this, sources said. In May, ONGC had moved the Delhi High Court alleging that RIL had siphoned off natural gas from its fields adjacent to the KG-D6 block in the Krishna-Godavari basin.


ET