The CAG report also said the total financial impact of excess cost recovery allowed by the government during 2012-14 – and pointed out by the CAG – was about Rs 9,307 crore. Later, audit for the same period noticed additional issues of excess cost recovery of Rs 278 crore.
The independent expert, DeGolyer and MacNaughton (D&M), in its report filed in 2013 had stated that there can be a possible migration of gas between the fields.
In the case, ONGC had moved the Delhi High Court alleging theft of its gas by RIL by drilling wells close to its block. RIL had started production in the KG-D6 block (KG-DWN-98/3) in 2009. ONGC had alleged that RIL had stolen gas worth Rs 30,000 crore from its block in the Krishna-Godavari (KG) basin.
The ONGC petition says four wells have been drilled by RIL within distances ranging from 50 to 350 metres from its own block. After instruction by the Delhi High Court, a one-member committee of A P Shah was set up on December 15 last year to file a report on the issue. The Shah panel is expected to submit its report by the end of this month. The D&M report is currently under the consideration of Shah panel. KG-DWN-98/2 and Godavari PML, which came under the possession of the ONGC in 2005 and 1997, are adjacent to RIL’s KG-DWN-98/3.
The ONGC petition states that four wells (KG-D6-B8, KG-D6-A5, KG-D6-A9 and KG-D6-A13) were drilled by RIL in a calculated angular incline, with a clear idea to tap the former’s reserves.
RIL had started production in the block in 2009.