Lok Sabha Question No. 1955 (UNSTARRED), answered on 2016-11-28
Subject: ONGC Dispute in KG Basin
Ministry: PETROLEUM AND NATURAL GAS
Asked by: HARI OM PANDEY, V. PANNEER SELVAM, K. GOPAL, RAMACHANDRAN MULLAPPALLY, (SMT.) RATNA DE(NAG), BALASUBRAMANIAM SENGUTTUVAN, CHANDRA PRAKASH JOSHI, CHINTAMAN NAVSHA WANAGA, ASADUDDIN OWAISI

## GOVERNMENT OF INDIA MINISTRY OF PETROLEUM & NATURAL GAS

## LOK SABHA UNSTARRED QUESTION NO. 1955 TO BE ANSWERED ON 28 th  November, 2016

## ONGC DISPUTE IN KG BASIN

1955:  SHRI HARI OM PANDEY:

SHRI V. PANNEERSELVAM:

DR. K. GOPAL:

SHRI MULLAPPALLY RAMACHANDRAN:

DR. RATNA DE (NAG):

SHRI B. SENGUTTUVAN:

SHRI CHANDRA PRAKASH JOSHI:

ADV. CHINTAMAN NAVASHA WANAGA

SHRI ASADUDDIN OWAISI:

पेट्रोलियम एवं प्राक ृ तिक गैस मंत्री

## Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) whether the Government proposes to seek compensation from Reliance Industries Limited (RIL) and pay to Oil and Natural Gas Corporation Limited in Krishna-Godavari Basin oil fields dispute on migration issue as per AP Shah Committee recommendation in this regard;
- (b) if so, the details thereof along with the number of recommendations accepted by the Government and action taken thereon;
- (c) whether  the  Government  has  recovered  the  required  amount  from  RIL  and  if  so,  the  details thereof and if not, the time by which the said amount is likely to be recovered;
- (d) whether the Director General of Hydrocarbons has since quantified the extent of compensation to be sought from RIL and if so, the details thereof; and
- (e) whether the Government oil companies propose to buy KG basin area and if so, the details thereof along with the status of the project?

## ANSWER

## पेट्रोलियम एवं प्राक ृ तिक गैस मंत्रािय में राज्य मंत्री ( स्विंत्र प्रभार ) ( धमेन्द्र प्रधान )

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE  MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN):

- (a)  &  (b) Justice  A.P.  Shah  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 ONGC's blocks KG-DWN-98/2 and Godavari PML.   The Committee has concluded that the  Government  of  India,  and  not  ONGC,  is  entitled  to  claim  restitution  from  RIL  for  the  unjust benefit it received and unfairly retained.  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.
- (c) & (d) On the basis of the quantification worked out by the Directorate General of Hydrocarbon (DGH), Government issued a notice dated 03.11.2016, and 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  along  with  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 Ministry's notice dated 3.11.2016. (e) Areas for oil and gas exploration have been allotted by Government through nomination PRENELP / NELP bidding rounds.  Further, any transfer / assignment of the Participating Interest (PI) of the  contractor  to  any  government  oil  company  /  private  company  operating  under  the  Production

Sharing Contract (PSC) regime is governed by the provisions of the relevant PSCs.

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