New Delhi: Reliance Industries Ltd on Thursday refuted before the Supreme Court the Centre’s allegation that it and its offshore partners siphoned gas from Krishna-Godavari basin deposits that had migrated from fields operated by Oil and Natural Gas Corporation.
A three-judge bench headed by Chief Justice of India Surya Kant, along with Justices Joymalya Bagchi and Vipul M. Pancholi, was hearing appeals filed by RIL, BP Exploration (Alpha) Ltd and Niko (NECO) Ltd against a Delhi High Court order.
The High Court, in its February 14, 2025 ruling, had set aside an arbitral award that was earlier upheld by a single-judge bench in favour of the companies in the gas migration dispute.
The case relates to a demand of $1.47 billion raised by the petroleum ministry on November 4, 2016 against the Reliance-BP-Niko combine for producing gas that allegedly migrated from ONGC’s blocks into the adjoining KG-D6 block in the Bay of Bengal over seven years ending March 31, 2016.
Appearing for RIL, senior advocate Abhishek Singhvi said it was alleged that the firms had “unjustly” extracted or “stolen” gas that migrated from ONGC’s fields. He said, “The ONGC (Oil and Natural Gas Corporation) was sleeping over for 10 years while operationalising the gas extraction.” How the RIL and partners can be accused of causing migration of gas, he said.
The bench observed that gas migration could not be caused intentionally and could be incidental.
Singhvi also questioned how any alleged extraction could be quantified.
Senior advocate Kapil Sibal, appearing for one of the foreign firms, supported the arguments and said, “let us assume that ONGC had operationalised the gas extraction and RIL and others did not…Then, can the government act the way it did and ask ONGC to compensate us”. He added that the “whole allegation of gas theft was very wrong”.
He also said the government’s approach could affect economic growth, referring to policies allowing foreign direct investment in the sector.
The hearing will continue on Friday.
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