Tracking of India's natural resources by the Companies in India and abroad

Discussion in 'Economy & Infrastructure' started by Pintu, Apr 3, 2009.

  1. Pintu

    Pintu New Member

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    Gas from PSU fields to cost $0.8/unit more- Oil & Gas-Energy-News By Industry-News-The Economic Times

    Gas from PSU fields to cost $0.8/unit more
    5 Sep 2009, 0439 hrs IST

    NEW DELHI: A proposal to increase the price of natural gas produced from fields awarded to state-owned energy firms without inviting bids from $1.8 per million British thermal units (mBtu) to $2.6 per mBtu will be submitted to the Cabinet soon for its approval, joint adviser of finance in the oil ministry VLVSS Subba Rao said.

    The price, effective April 1, 2009, is linked to India's wholesale price index, he said here on Friday on the sidelines of a press conference organised by Oil India to promote its IPO.

    The government regulates price of natural gas produced from such fields (also called nominated blocks) before the introduction of the new exploration licensing policy (Nelp) in 1999. It regulates the price of over 70% of the administered price mechanism (APM) gas produced in the country from nominated blocks.

    Most of the nomination blocks are awarded to state-owned firms Oil & Natural Gas Corporation and Oil India.
    Higher gas prices will benefit both ONGC and Oil India. ONGC alone had lost about Rs 3,000 crore in 2008-09 for selling natural gas below production costs. ONGC produced 22.5 billion cubic metres of gas in the previous financial year which was 60% of country's total output.
     
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    Pintu New Member

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    NTPC moves SC against Bombay HC order- Oil & Gas-Energy-News By Industry-News-The Economic Times

    NTPC moves SC against Bombay HC order
    6 Sep 2009, 0058 hrs IST, Sanjay K Singh, ET Bureau

    NEW DELHI: NTPC on Saturady moved the Supreme Court seeking quashing of the Bombay high court order giving permission to the Mukesh Ambani’s Reliance Industries Ltd (RIL) to amend its plea in its on-going dispute with the country’s largest utility on the supply of gas from the Krishna-Godavari basin.

    "It is submitted that the amendment in effect seeks to portray the Central government as the chief architect of the inability of RIL in being able to perform GSPA (Gas Sale&Purchase Agreement) and having impliedly taken away the foundational basis of a very carefully structured bid and suggests that on this basis that the GSPA is one which is incapable of performance. This it is submitted is an entirely new case and ought not to have been permitted to be urged for the first time by way of a written statement", said NTPC in its Special Leave Petition (SLP).

    It further said, "the subject matter of disputes between petitioner (NTPC) and the Respondent (RIL) was under a global tender invited by the petitioner for supply of gas and was not as per any directive of the Central government".

    RIL had arrived at an agreement with the NTPC to supply 12 million standard cubic metres per day (mmscmd) gas at US$ 2.34 per million British thermal unit (mmBtu) pusuant to the global competitive bidding.

    However, the RIL sought to wrigle out and avoid the GSPA on the one pretext or the other, had compelled NTPC to move Bombay high court for enforcement of its agreement with the contractor RIL. The Chirman of RIL Mr Mukesh Ambani in his letter dated June 22, 2004 thanked the then chairman of NTPC for selecting RIL, said state owned utility in its SLP.

    RIL had filed its written statement on Jan 31, 2007 before the high court in the case. The issues were framed on Oct 6, 2008 and the evidence have been commenced. But the order of the Division bench of the high court passed on July 30 upholding the order of the single judge bench of the high court allowing the application of RIL to amend its written statement in the case is illegal, said NTPC.

    Mukesh Amani’s firm had amended its written statement taking advantage of an affidavit filed by the oil ministry in the high court for a separate case (RIL vs RNRL). The government affidavit, filed on January13, 2009 but later withdrawn had stated that price of KG basin gas was fixed at $4.20 mBtu by an empowered group of ministers (EGoM).

    NTPC seeking direction of the apex court to restrain RIL from amending its written statement said, the EGoM in its first meeting held on Sep 12, 2007 had expressly stated that the "decision taken in this EGoM meeting will be without prejudice to the NTPC vs RIL and RNRL vs RIL case which are separately subjudice".

    "The second EGoM decision dated May 28, 2008 was relating to commercial utilization of natural gs under NELP and the third EGoM decision dated Oct 23, 2008 reiterated the decision taken in the first in the first EGoM dated Sep 12, 2007 that regarding NTPC-RIL sale price the verdict of the court(Bombay high court) should be awaied", NPTC said.
    NTPC further said in its SLP, "as regards the fourth EGoM dated Jan 8, 2009 though referred to in the proposed amendment by RIL, the same is not on record.

    This apart the GSPA (which is not the subject matter of the suit (NPTC vs RIL in high court) relates to supply of gas by the Respondent (RIL) which it would be getting under the Production Sharing Contract dated Feb 14, 2000 between the Union of India and RIL and had the PSC disabled RIL from marketing gas there was no way the RIL would have even offered to supply the gas and submitted its bid".

    The petitioner being desirous of expanding the current capacity of its existing gas based power generating plants at Kawas and Jhanor, Gandhar in the state of Gujarat by approximately 2600 MW to meet the power requirements of the state of Gujarat and Maharashtra and the Union Territories of Western India through a global competitive tendering process invited bids for supply of natural gas to its proposed plant expnasions, said NTPC to the apex court.

    NTPC further said, ‘grave prejudice and irreparable harm and injury would be caused to the petitioner if the Respondent is allowed to amend its written statement pending the hearing and final disposal of this SLP".
     
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    Pintu New Member

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    The Telegraph - Calcutta (Kolkata) | Business | NTPC twist to gas dispute

    NTPC twist to gas dispute

    OUR LEGAL CORRESPONDENT

    [​IMG]

    Argument continues

    New Delhi, Sept. 5: National Thermal Power Corporation Ltd today moved the Supreme Court to stop Mukesh Ambani-owned Reliance Industries from using the government’s gas pricing policy as an excuse to back out of a five-year-old commitment to supply gas to the state-owned power utility.

    Reliance Industries recently secured Bombay High Court’s approval to amend its petition before the court in the gas dispute with NTPC, which the state-owned company has now challenged.

    Last month, the government filed a petition in the gas dispute between RIL and Anil Ambani’s Reliance Natural Resources in which it asserted its right to fix gas prices. RIL has been trying to worm the government’s assertion into its petition in the NTPC case before Bombay High Court.

    NTPC and RNRL are battling RIL to secure gas supplies at an agreed price of $2.34 per million British thermal unit (mBtu) rather than a government-mandated price of $4.20 per mBtu.

    Both entities claim they have cast-iron long-term agreements with RIL that pre-date the government’s decision in September 2007 to fix the price of gas from the Krishna-Godavari basin.

    In the RNRL-RIL dispute, which comes up for hearing before the Supreme Court on October 1, the government has asserted that no gasfield contractor can sell at a price lower than $4.20 per mBtu.

    However, the government had also said this assertion was without prejudice to the case that NTPC was fighting before Bombay High Court since that price was discovered through a global competitive bidding process.

    Despite the rider, RIL has sought to use the government’s logic to wriggle out of its gas supply commitment to NTPC.

    RIL claims it had not signed a contract with NTPC. The state-owned power utility alleges that RIL was backing out of its commitment as gas prices rose in the international markets. In recent weeks, however, natural gas prices have tumbled below $2 per mBtu in the US.

    In 2004, RIL had won an NTPC contract to supply 12 million cubic metres of gas a day at a price of $2.34 per mBtu to its Kawas and Gandhar projects in Gujarat.

    Reliance Industries had told the high court that it would not be able to sell gas to NTPC at $2.34 per mBtu since the empowered group of ministers had fixed it at $4.20.

    RIL’s amended plea will enable it to argue that even if there was a valid contract with NTPC, the government’s subsequent stand on gas pricing will frustrate its ability to fulfil its contractual obligation.

    A single-judge bench of the high court had allowed RIL to amend the petition, but had stayed its order for six weeks to enable NTPC to file an appeal before the apex court. The stay has been extended by another two weeks by the division bench.
     
  4. Pintu

    Pintu New Member

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    Financial closure tough if more D6 gas not allocated now: RCF - Oil & Gas-Energy-News By Industry-News-The Economic Times

    Financial closure tough if more D6 gas not allocated now: RCF

    27 Sep 2009, 1315 hrs IST, PTI

    MUMBAI: Rashtriya Chemicals & Fertilizers (RCF) has asked for additional allocation of gas from Reliance Industries' KG D6 fields for future projects, saying it may not be able to complete financial closure unless the fuel was committed.

    The PSU firm also said fertilizer companies will require 20-million units of gas over the next 3-4 years as many would convert to using gas as feedstock instead of costlier naphtha.

    "If we take a 3-4 year time horizon, then the industry will need 20 mmscmd (million standard cubic metres per day) of gas. And that gas has to be allocated now, otherwise no financial closure will take place," RCF Chairman and Managing Director, U S Jha, said.

    "This would mainly be used for revamping and conversion of units from naphtha to gas," said Jha, who also serves as Director on the Board of Fertilizer Association of India.

    Madras Fertilizers, Nagarjuna Fertlizers and GNFC among others were going for conversion to gas-based units, he said.

    Fertilizer Secretary Atul Chaturvedi also, earlier this month, sought over 43 mmscmd of additional gas to convert all existing non-gas based units to gas, revive closed urea units and for setting up of expansion projects.

    Fertilizer units and urea plants currently receive a total of 15.1 mmscmd of KG-D6 gas, of which RCF draws 2.7 mmscmd for its Trombay and Thal plants
     
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    http://www.ptinews.com/news/301352_RCF-demands-price-parity-with-NTPC--RNRL-for-gas-from-RIL

    RCF demands price parity with NTPC, RNRL for gas from RIL

    STAFF WRITER 12:20 HRS IST

    Mumbai, Sep 26 (PTI) State-owned Rashtriya Chemicals and Fertilisers has demanded price parity with NTPC and Anil Ambani Group firm RNRL for the gas supplied by Mukesh Ambani's RIL, saying it would improve the profitability of the company by 20 per cent.

    RNRL and NTPC are fighting legal cases separately for obtaining gas at USD 2.34 per mmBtu, lower than the government approved rate of USD 4.34 per mmBtu from Reliance Industries' K-G D6 fields.

    "If that price (USD 2.34) is at arm's length basis, then it has to be extended to fertiliser companies as well," RCF Chairman and Managing Director U S Jha said.

    Jha said that if RCF gets gas at a price of USD 2.34 per mmBtu,then the company's profitability can rise by 20 per cent over the previous fiscal.
     
  6. Pintu

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    RIL justifies levy of marketing margin on gas sale- Oil & Gas-Energy-News By Industry-News-The Economic Times

    RIL justifies levy of marketing margin on gas sale
    27 Sep 2009, 1403 hrs IST, PTI

    NEW DELHI: In the face of opposition from the Power Ministry and an Anil Ambani group firm on the marketing margins charged, Reliance Industries has justified the levy saying it was essential to cover risks and costs incurred in marketing of gas.

    "The marketing margin being charged by RIL on sale of KG-D6 gas is fair and justified consideration for the risks and costs undertaken in the GSPA including such risks and costs beyond the delivery point," RIL President (Gas Business) wrote to Power Secretary H S Brahma.

    Brahma had on September 25 questioned the levy as RIL being an integrated producer and marketer of gas while NTPC asked his ministry to seek a specific confirmation for the levy from the government.

    Terming as illegal the market margin, Anil Ambani group firm Reliance Infra had refused to pay the levy prompting RIL to issue a notice for suspension of fuel supply for "default". NTPC has sought to know whether the margins levied by RIL had government's approval.

    RIL said the USD 0.135 per mmBtu marketing margin over and above the price was to cover risks like sellers liabilities in case of non-supply, customers drawing less than their quota, non-payment of dues and settlement of disputes and claims on quality, quantity or terms of the GSPA.

    While marketing margin is a charge for creation of market and servicing sale contracts, RIL had undertaken extensive activity to identify customers, execute and manage gas sales and purchase agreements (GSPAs), gas sales planning
    , daily gas sales operations, gas accounting and invoicing and collection, Sharma wrote.

    Reliance Infrastructure had from this month stopped paying the levy to RIL, leading to the Mukesh Ambani firm RIL slapping a discontinuation notice.

    Other gas marketers like state-run GAIL India also charge marketing margin. It charges USD 0.18 per mmBtu margin on sale of regassified-LNG and about USD 0.12 per mmBtu for gas from fields like Panna/Mukta and Tapti and Ravv.

    "GAIL is negotiating to increase the marketing margin these fields to about USD 0.18 per mmBtu to bring it at par with marketing margin it charges on sale of R-LNG," Sharma wrote.

    RIL said it had in its application to the government for approval of the price of KG-D6 gas had indicated that marketing margin would be charged separately to cover costs and risks in sale of gas.

    "It has also been clarified by Petroleum Ministry that marketing margin has to be discussed and settled between seller and buyer of gas in settlement of the terms of the Gas Sales and Purchase Agreement," Sharma wrote.

    Quantum of marketing margin is agreed between seller and buyer of gas based on the cost and risks perceived under the PSC.

    For KG-D6 gas, RIL had initially proposed USD 0.12 per mmBtu as marketing margin but when customers sought multiple changes to increase RIL's risks and liabilities, the levy was raised to USD 0.15 per mmBtu.

    The same was again discussed with buyers in the fertiliser sector (who were given the top most priority to receive KG-D6 gas) and the Department of Fertilisers and finally a marketing margin of USD 0.135 per mmBtu was agreed with the buyers, it added.
     
  7. Pintu

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    RIL refuses gas to RNRL saying it cannot consume fuel- Oil & Gas-Energy-News By Industry-News-The Economic Times

    RIL refuses gas to RNRL saying it cannot consume fuel
    6 Oct 2009, 2219 hrs IST, Sanjay K Singh, ET Bureau

    NEW DELHI: Mukesh Ambani’s led Reliance Industries Ltd (RIL) on Tuesday told the Supreme Court that the “Listing Particulars” of Anil Ambani’s promoted Reliance Natural Resources Ltd (RNRL) has revealed that the supply of gas from the Krishna-Godavari basin at the discounted rate of at $2.34 per million British thermal uni to it will not be passed on to the consumers but sold to its own companies at market price. It further said, if the demand of RNRL is granted, immense loss will occur not only to RIL but to the government as well and RNRL would reap a windfall.

    “If RNRL’s demands were granted, the Government would lose large sums of money in profit sharing, royalties and taxes. RNRL would reap a windfall at the expense of the government and RIL and its shareholders”, said RIL in its affidavit filed in the apex court.

    It said, “the only way gas supplies could be made to RNRL (as demanded) would be if the government were to approve supply of this huge quantity of gas at below market price”.

    RIL said that it is merely a contractor and bound by the government’s policy on gas.

    “Marketing freedom under the PSC (Production Sharing Contract) is not absolute but rather circumscribed by the provisions of the PSC and the policies and directions of the government”, said RIL in its affidavit.

    RIL said, “what RNRL demands in this case is contrary to the provisions of the production Sharing Contract(PSC-entered into between the Union of India and RIL) and the gas utilization policy promulgated and the consequent directives of the Government of India”.

    It further said, “RNRL seeks to obtain a lion’s share of the KGD6 gas despite the fact that it has not built a single power plant since the demerger and the ADAG group owns just one gas plant which consumes a miniscule quantity of gas”.

    RIL also moved a separate application in the apex court on Tuesday to palce on record certain documents in order to decide its dispute with RNRL over supply of KG gas.

    It said in its application, “It is submitted that the RNRL issued ‘Listing Particulars’ dated Aug 23, 2006, while listing its Global Depository Receipts (GDR’s) before the Luxemborg Stock Exchange.

    RNRL has sought to create an impression in the SLP (in the apex court on supply of KG gas from RIL at discounted price) that the benefits of the lower gas price will be passed on the RNRL to the consumers of electricity, i.e. the common man. But the contents of the listing particulars reveals that RNRL will sell the gas to its affiliated power companies at prevailing market price”, said RIL in its application.

    RIL said, the information about it was not available to it as it had no access to the same. But the fact has been brought to the notice of RIL only recently, it said.

    “It is submitted that this document (Listing Particulars of RNRL) is relevant to dispel the impression sought to be created by RNRL”, said RIL seeking permission of the apex court to place it on record to resolve the dispute between two companies pertaining to supply of KG gas.

    RIL further said in its application, “it is submitted that in view of the findings of the Division Bench (Bombay high court which had directed RIL to supply KG gas to RNRL at discounted price) and the contentions of RNRL, it is necessary to bring on record the minutes of the subsequent Board meetings that were held on Aug 2, 2005 and Aug 5, 2005 to show that the MoU (of 2005 was never palced before the Board of Directors of RIL and as such was not considered or approved by it as contended by RNRL”.

    Mukesh’s firm sought permission of the court to palce the minutes of Board meetings of Aug 2, 2005 and Aug 5, 2005 to decide the row.

    RNRL in its affidavit had told the apex court, “It is submitted that the effective de-merger of the business between the company and its transferee has not taken place. It is well within the jurisdiction of the court that the business is actually de-merged. The business in question was the business of gas supply. If the actual gas supply does not take place between RIL and RNRL, there is no de-merger”.

    According to the MoU signed in 2005, as part of a settlement on division of the Reliance empire, RIL is to supply 28 million standard cubic metres per day (mmscmd) of gas to RNRL at $2.34 per million British thermal unit (mmBtu). This price is at a 44% discount to the price of $4.20 per mmBtu fixed later by the government for sale of gas by RIL to some power and fertiliser companies.

    RIL in its application said, “it is further submitted that Respondent/Applicant (RIL) has now learnt that on December 18, 2006, after filing the company application, Reliance Fuel Resources Ltd (an RNRL affiliate) addressed a communication to MoPNG (Ministry of Petroleum and Natural Gas) on the subject of seeking authorisation for Kakinada Dadri pipeline project, wherein it was stated that the GSMA was a valid and legally binding document, whereas RNRL has alleged in the present proceedings that the GSMA is a bogus and fraudulent document”.

    “It is submitted that the same could not be placed on record earlier, as the Respondent(RIL) had no access to the same and came to know of the same recently”, said RIL pleading apex court to place it on its record to resolve the dispute between RIL and RNRL over supply of KG gas.

    Apart from it, six other affidavits were also filed by the directors of RIL questioning MoU of 2005 over supply of gas by it.

    These includes the affidavits of Hital Rasiklal Meswani, Dharam Vir Kapur, Yogendra Premkrishna Trivedi, Nikhil Rasiklal Meswani, Hardev Singh Kohli and Mahesh Prasad Modi, all directors of RIL.

    In their separate affidavits they said,” the synopsis to the SLP (RNRL) creates a mistaken impression that the Board of Directiors accepted and approved the contents of the MoU dated June 18, 2005. This is not true”.

    The apex court is scheduled to take up the issue on Oct 20.

    Ministry of Petroleum and Natural gas had moved apex court seeking quashing of the Bombay High Court order directing RIL to supply gas to RNRL at $2.34 per mmBtu.

    RIL had moved the Supreme Court challenging the Bombay High Court order that asked it to supply 28 mmscmd of gas to RNRL at USD 2.34 per mmbtu.

    RNRL on the other hand appoched the apex court against the part of the Bombay high court judgment. RNRL had said, the high court while directing that the Gas Supply Agreement ought to be amended as it should have given final and effective directions for amendment of such agreement to make it bankable.
     
  8. Pintu

    Pintu New Member

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    Oil Min seeks expansion of legal team for gas dispute case

    Oil Min seeks expansion of legal team for gas dispute case
    Press Trust of India / New Delhi October 13, 2009, 14:31 IST

    The Petroleum Ministry has sought expansion of the legal team that is to argue the government's stand on the gas dispute between the Ambani brothers before the Supreme Court beginning next week.

    "We wrote to the Law Ministry last week seeking strengthening of the legal team with appointment of more lawyers," a senior oil ministry official said.

    ASG Mohan Parasaran currently represents the government in the dispute over the quantities and price committed by Mukesh Ambani-led Reliance Industries in a 2005 family agreement for supply of natural gas to a company run by younger brother Anil Ambani.

    The government has filed a Special Leave Petition in the apex court seeking to become party to the dispute and has contended that national resources cannot be appropriated through private family arrangements and it alone holds the right to approve rates and decide on customers keeping national priorities in mind.

    The official said one more ASG, besides 3-4 junior lawyers, have been sought to "substantially increase" the strength the legal team. "Parasaran stays on the team and the increase in number has been sought with his approval."

    Industry sources said it was being debated if SG Gopal Subraminum may also included in the team.

    Anil Ambani Group has filed a petition in the Supreme Court seeking natural gas from RIL at rates 44 per cent lower than the government approved price. More

    The Mukesh Ambani-led firm, too, has moved a cross-appeal saying it cannot violate the Production Sharing Contract (PSC) for the fields that provides for government role in approving the price and formulating a Gas Utilisation Policy.

    The official said the draft of the replies of the petitions filed by RIL and Anil Ambani Group firm Reliance Natural Resources Ltd (RNRL) was ready and was being discussed with the Law Ministry. "It will be filed in next few days."

    RNRL is seeking a minimum 28 million standard cubic meters per day or more than one-third of the peak output from RIL's eastern offshore KG-D6 fields, at $2.34 per million British thermal unit. This rate is 44 per cent lower than the $4.20 per mmBtu price approved by the government for KG-D6 gas in September 2007.

    The government has allocated the initial 40 mmscmd of output from KG-D6 among power, fertiliser, steel and LPG units, which are buying the fuel at the approved rate of $4.20 per mmBtu.

    RIL can produce about 65 mmscmd gas but is forced to keep the output at just over 40 mmscmd in absence of government not nominating buyers for additional gas. Output is slated to touch peak of 80 mmscmd before the year end.
     
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    Pintu New Member

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    http://www.ptinews.com/news/336656_Ambani-brothers--gas-dispute-set-for-SC-date

    Ambani brothers' gas dispute set for SC date

    STAFF WRITER 16:41 HRS IST

    New Delhi, Oct 18 (PTI) Two of the top corporate houses ? headed by estranged industrialist brothers Mukesh and Anil Ambani ? are set for a showdown in the Supreme Court, which will on Tuesday commence hearing on their gas supply dispute.

    The fight relates to supply of gas to Anil Ambani group's Reliance Natural Resources Ltd (RNRL) from D6 block in Krishna-Godavari eastern offshore fields of elder sibling Mukesh-led Reliance Industries (RIL).

    Days before the beginning of hearing in Supreme Court, Anil Ambani also made a surprise truce offer to resolve the dispute cordially, but Mukesh Ambani questioned its sincerity without rejecting the proposal.

    In a public statement on October 11, Anil said all the disagreements could be resolved within weeks, but RIL questioned the sincerity of the offer made "through the public domain" and said Anil could have easily contacted his elder brother directly.
     
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    The Associated Press: India's natural gas tied up in $17B family feud

    India's natural gas tied up in $17B family feud

    By ERIKA KINETZ (AP) – 4 hours ago

    MUMBAI, India — An ashen Anil Ambani, one of the world's richest men, stood before a clutter of television cameras, close to tears.

    "There is only pain, hurt and emotion," he said, his voice catching.

    There is also, by some calculations, at least $17 billion at stake.

    Anil and his brother Mukesh — ranked by Forbes magazine as the world's 34th and 7th richest individuals — are locked in an increasingly bitter fight over India's biggest natural gas deposit.

    The battle between the famous sons of one of India's first great capitalists has quickly become the nation's favorite family feud. It has also exposed flaws in the government's management of the crucial energy sector and the cozy relationship between officials and one of India's wealthiest families.

    The case is scheduled to go before India's Supreme Court on Oct. 20.

    Some policymakers say the dispute, along with the global recession, has further discouraged the investment so badly needed to help develop gas and oil resources for this energy-hungry nation of 1.2 billion people.

    After trying to recruit foreign investors from Houston to Perth, the government got bids last week for just 36 of 70 oil and gas blocks on offer. Only seven foreign companies participated.

    Meanwhile, the bickering brothers have made it harder for energy to reach people in a country where more than 450 million struggle by on less than $1.25 a day.

    Each claims the legal battle is preventing their companies from selling gas or building new power plants.

    At issue is the price of natural gas from India's largest known deposit: The Krishna Godavari basin, off the eastern coast, which would double the amount of natural gas produced in India.

    A family agreement signed by the brothers in 2005, after their father, Dhirubhai Ambani, died without leaving a will, says that Mukesh's company, Reliance Industries, will sell Anil's company, Reliance Natural Resources, at least a third of the basin's projected output. The price agreed back then is well below what the gas can be sold for now.

    Both Reliance Industries and government officials now argue that the 2005 agreement is void because the government never approved the below-market price.

    Anil counters that Reliance Industries is trying to break a binding contract, abetted by Mukesh's allies in the Ministry of Petroleum, which is headed by an old friend of their father.

    In June, the Bombay High Court upheld the substance of the family agreement. That ruling is being appealed in the Supreme Court.

    Mukesh's company is counting on making $11.5 billion from the gas if he's allowed to increase the price. But if Anil gets his way, that anticipated profit could turn into a $5.4 billion loss.

    For Anil, the cost of losing the case could be even higher. Analysts, and Anil himself, say the future of Reliance Natural Resources hangs in the balance. The gas supply contract, he told shareholders in July, is "our company's primary asset and contributes most of its value."

    Angel Broking analyst Deepak Pareek calculated the company's stock price would likely plunge by 76 percent if Anil loses the case.

    The pressure has compelled Anil to break the cozy silence that typically clings to power in India.

    He's taken on not just his brother, but the Indian government itself, issuing a weeklong series of front page newspaper advertisements lambasting the government for allowing his brother to rake in "super-normal" profits.

    "RIL has tried every trick in the book — and apparently several outside the book — to back out of its solemn, legal and contractual obligations," Anil told his shareholders in July.

    Broadening the attacks, Anil's company in court documents accuses a top energy official, V.K. Sibal, of accepting favors — including apartments and home appliances for his daughters. The daughters allegedly stayed in "posh guest houses" owned by Mukesh's company for several months during the time Sibal decided to approve new capital spending rules that would increase RIL's profits.

    Sibal, now reportedly under investigation, denies those charges. "I fear a threat to my life," he said in a letter leaked to the press.

    Reliance Industries and the government have issued sober denials of Anil's other allegations too.

    Last week, Anil made a pilgrimage to two holy shrines in the Himalayas "seeking divine inspiration and blessings, in trying to heal the wounds," as he said in a widely released statement. He came home convinced he and his brother could negotiate a settlement.

    Mukesh's company welcomed the overture, but said the dispute is "not merely a family matter" and should be resolved in court.

    The litigation has put the government in a delicate position.

    It is trying to strike a balance between retaining control of a valuable natural resource to be used in the national interest and not appearing to undermine the sanctity of a private business contract.

    That may be an impossible juggling act and raises a bigger question of how the government can fix the weaknesses the dispute has highlighted.

    India's natural gas sector — from exploration to pipelines — is dominated by just a few players owned either by the state or the Ambanis. Besides owning energy companies, the government through its Petroleum Ministry sets energy policy and the prices that producers can sell oil and gas for.

    Some say that concentration of power combined with a lack of transparency is a recipe for disaster.

    Harinder Kohli, chief executive of Washington-based emerging markets consultancy Centennial Group, said an independent regulator should be quickly set up to vet wholesale gas prices so the government isn't continually entangled in accusations of favoritism and corruption.

    "There is too much arbitrary power," he said. "That corrupts. There is a bigger lesson, irrespective of which brother is right: This is not the way the game should be played."
     
  11. Pintu

    Pintu New Member

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    EGoM to meet on Oct 27 to consider KG-D6 gas allocation- Oil & Gas-Energy-News By Industry-News-The Economic Times

    EGoM to meet on Oct 27 to consider KG-D6 gas allocation
    25 Oct 2009, 1629 hrs IST, PTI

    NEW DELHI: An Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee will on Tuesday consider allocating natural gas produced by RIL among new users in sectors such as power but may not give any fuel for the compay's petrochemical plants and refineries.

    The seven-member EGoM (a Cabinet sub-committee) is scheduled meet in the afternoon of October 27 and the agenda as set in the terms of reference is "issues of commercial utilisation of NELP gas and other related matters," a top official in the Petroleum Ministry said.

    "Since production from RIL's (eastern offshore) KG-D6 fields will be ramped up in phases to 80 million standard cubic meters per day, the EGoM will consider making a part of the allocation on firm basis and the rest on fall-back (or temporary) basis," he said.

    While the government had previously allocated the initial 40 mmscmd of output from KG-D6 fields to fertiliser units, power plants, city gas projects, LPG plants and the steel sector, the EGoM in the first meeting would consider allocating additional 20 mmscmd of gas to users in sectors like power and fertilizer on firm basis.

    Any gas that Reliance Industries can produce more than this 60 mmscmd, would be allocated to users on temporary basis till such time that RIL is confident of producing the peak output on a sustained basis.

    "We are going to the EGoM with the sole agenda of allocating gas to new users. There is nothing else that we are taking to the EGoM," the official said.

    Power plants are likely to get priority in the additional allocation while the demand by RIL for 9-10 mmscmd of gas for use in its petrochemical plants and twin refineries at Jamnagar in Gujarat may be ignored for the time being, he said.

    Asked if the issue of marketing margin charged by RIL over and above the USD 4.205 per million British thermal unit price of gas approved by the Government may be considered, the official said that was not on agenda as EGoM was concerned with only approving the landfall point price (USD 4.2 per mmBtu) and agreements and charges beyond that were commercial arrangements with buyer and seller.

    RIL had earlier this month written to the government saying it was confident of producing 60 mmscmd of gas on a sustained basis and additional output beyond this should be allocated only on a fallback or temporary basis. The peak output of 80 mmscmd on a sustained basis will be achieved in about a year's time.

    The official said RIL did not want to commit gas that it is not confident of producing in the immediate future. RIL now has capacity to produce at about 65 mmscmd of gas but is forced to restrict the output to 40 mmscmd for lack of government-identified buyers.

    The official said the EGoM has been constituted with the mandate to allocating gas to users and pricing of gas was not included in its terms of reference.


    "The previous EGoM had (in September 2007) fixed the price of gas (at USD 4.205 per mmBtu) for five years and so that continues," he said. RIL begun gas production in April this year.

    The previous EGoM, which ceased to exit with General Elections in May this year, had allocated the first 40 mmscmd of gas from KG-D6 to fertiliser units, power plants, city gas projects, LPG plants and steel sector.

    Demands for about 100 mmscmd gas has been made by users from power plants to refineries to steel units.

    RIL cannot sell gas to any of the users, including its own refineries, which are starved of fuel, unless allocation is approved by the government.

    The company buys 10-12 mmscmd of liquefied natural gas (LNG) from spot market at over USD 9 per mmBtu. RIL has so far contracted gas supplies to 15 fertiliser firms, 19 power plants and three steel makers.

    It has also signed a gas sales and purchase agreement (GPSA) with GAIL for supply to its LPG plant and city gas distributors like Indraprastha Gas Ltd for city gas.

    The EGoM includes Home Minister P Chidambaram, Petroleum Minister Murli Deora, Law Minister Veerappa Moily, Fertiliser Minister M K Alagiri, Power Minister Sushil Kumar Shinde and Planning Commission Deputy Chairman Montek Singh Ahluwalia.
     
  12. Pintu

    Pintu New Member

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    RIL debunks R-infra charges on marketing margins on gas sale- Oil & Gas-Energy-News By Industry-News-The Economic Times

    RIL debunks R-infra charges on marketing margins on gas sale
    25 Oct 2009, 2031 hrs IST, PTI

    NEW DELHI: Mukesh Ambani-led Reliance Industries has debunked allegations that it was charging illegal marketing margin on sale of natural gas saying the levy was to cover for risks and costs for delivering the fuel to customers and was in conformity with industry practice.

    "The marketing margin (of USD 0.135 per mmBtu) being charged by RIL on sale of KG-D6 gas is in consideration for the risks and costs beyond the delivery point in accordance with general industry practice," the company said in a statement this evening.

    The statement followed Anil Ambani Group firm Reliance-Infrastructure writing to Power Minister Sushilkumar Shinde requesting him to take up the issue of RIL charing "illegal" marketing margin at the meeting of the Empowered Group of Ministers (EGOM) on Tuesday.

    ".... the quantum of marketing margin has been agreed to in the Gas Sales and Purchase Agreements (GSPAs) signed between RIL and over 40 customers in the fertilizer, power, steel, LPG and city gas sectors," RIL said.

    Under the Production Sharing Contract (PSC) signed with the government for KG-D6, pursuant to an application by RIL, the Government has approved a price formula for sale of gas at the delivery point under the PSC.

    "While the risks and costs of the E&P operations are covered under the PSC, the risks and costs incurred in marketing of gas have been explicitly excluded from the purview of the PSC," RIL said.

    "RIL denies any allegation that the marketing margin charged under the GSPA is in violation of the EGOM/Government decisions and/or the interim arrangement put in place by the Bombay High Court Order dated January 30, 2009," the statement said.

    The seven-member EGoM (a Cabinet sub-committee) is scheduled to meet in the afternoon of October 27 to consider commercial utilisation of RIL's KG-D6 gas and other related matters but the issue of the company charging the USD 0.135 per mmBtu marketing margin is not listed on agenda.

    Asked if the issue of marketing margin charged by RIL may be considered on Tuesday, a Government official said it was not on agenda as EGoM was concerned with only approving the landfall point price (USD 4.2 per mmBtu) and agreements and charges beyond that were commercial arrangements with buyer and seller.

    Reliance Infrastructure Ltd, an Anil Ambani Group firm, on October 23 wrote to Shinde asking him to take up the issue of the levy over and above the Government-approved gas price of USD 4.205 per million British thermal unit.

    "RIL should be directed to immediately put a stop to this illegitimate levy of marketing margin from all customers of KG Basin gas and refund the marketing margin wrongfully collected so far."

    R-Infra had paid the levy RIL imposed to make up for marketing cost for over four months without protest but on September 15 wrote to the Mukesh Ambani-firm saying it will no longer pay the "unauthorised and illegal" levy.

    Earlier this month, it has agreed to pay the levy "under protest" and sought withdrawal of the suspension notice for the default of the levy estimated at Rs 12 lakh.
     
  13. Pintu

    Pintu New Member

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    http://www.ptinews.com/news/352139_Gas-row--GSMA-suitable-solution--RIL-tells-SC


    Gas row: GSMA suitable solution: RIL tells SC


    STAFF WRITER 20:37 HRS IST

    New Delhi, Oct 28 (PTI) Mukesh Ambani group firm RIL today told the Supreme Court that the Gas Supply Master Agreement (GSMA) could be a suitable arrangement to resolve its dispute on supply of gas with Anil Ambani-promoted RNRL.

    Besides the GSMA, which is a post-contractual agreement with RNRL, RIL said the the price fixed for distributing gas to NTPC in 2003 could be applied to settle the row between the two companies.



    However, reliance of RIL on NTPC price (2.34 US dollar per unit) was objected to by the government which said the Mukesh Ambani group cannot raise the issue of contract with a PSU in this matter as RIL-NTPC matter is pending before the Bombay High Court.
     
  14. Pintu

    Pintu New Member

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    SC raises questions on suitable arrangement on Ambani dispute- Oil & Gas-Energy-News By Industry-News-The Economic Times

    SC raises questions on suitable arrangement on Ambani dispute
    28 Oct 2009, 1423 hrs IST, PTI

    NEW DELHI: Hearing the high voltage legal battle between the Ambani brothers, the Supreme Court on Wednesday raised questions on the possibility of the two sides working out a "suitable arrangement" to resolve the gas dispute.

    "What suitable arrangement you can make out or arrive at. There must be parameters to arrive at a suitable arrangement," a Bench headed by Chief Justice K G Balakrishnan said.

    The Bench was hearing for the fourth day the dispute between RIL and RNRL relating to supply of gas from KG basin for which the two brothers Mukesh Ambani and Anil Ambani are engaged in a bitter fight.

    "If you are not able to reach a suitable arrangement... We can direct you to arrive at a suitable arrangement or direct you to go for arbitration," the Bench observed.

    Anil's group is seeking gas from his brother's group RIL at rates 44 per cent lower Government-approved price. RIL says it cannot honour the commitment made in the 2005 family agreement due to Government's pricing and gas policies.

    When senior advocate Harish Salve was advancing the arguments for RIL, the Bench said, "what is the issue. There was an agreement but you did not arrive at a suitable arrangement and you came to the court. What will the court do?"

    "What is suitable arrangement. How will court know about the suitable arrangement between them(Ambani brothers)?" they asked.

    Salve said suitable arrangement as per the 2005 agreement is not working.
     
  15. Pintu

    Pintu New Member

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    Reliance strikes Oil in Gujarat

    Oil found in Gujarat.....


     
  16. Pintu

    Pintu New Member

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    RIL discovers oil in Cambay basin

    RIL discovers oil in Cambay basin
    BS Reporter / Mumbai November 11, 2009, 0:13 IST

    Mukesh Ambani-controlled Reliance Industries (RIL) today said it has made its first on-land oil discovery in the Cambay basin, around 130 km from Ahmedabad.

    Five wells had been drilled in the area, and the fifth well flowed at a rate of 500 barrels of oil per day (bopd), the company said in a statement. Analysts said the company would have to drill multiple wells to evaluate the size of the reservoir.

    “This (Cambay basin) discovery is expected to open future potential within the block,” RIL said. The petroleum giant was planning to drill four more wells in the basin as part of the minimum work obligation of nine wells. The block, awarded during the fifth round of National Exploration and Licensing Policy, covers 635 sq km.

    [​IMG]

    Earlier, Reliance had found crude oil reserves in the predominately gas-rich KG-D6 block off the east coast. The field, which came into production in September last year, was currently producing around 11,000 barrels a day.

    Reliance shares gained 1.35 per cent to close at Rs 2,052.60 on the Bombay Stock Exchange after the company announced the discovery today morning. The company shares have increased by 12.74 per cent in a week.

    The company owned 100 per cent of the participating interest in the Cambay basin field. The oil discovery in Cambay is the second in a row after finding oil in KG-D6 in 2002. The block, which started production in September last year, is now ramping up to the maximum level of 40,000 barrels of oil a day.

    The Cambay basin is a narrow and elongated rift, extending from Surat in the south to Sanchor in the north, with predicted resources of 2.05 billion tonnes. In the north, the basin narrows, but tectonically continues beyond Sanchor to pass into the Barmer basin of Rajasthan.

    On the southern side, the basin merges with the Bombay Offshore Basin in the Arabian Sea. The area of entire basin is about 53,500 sq km.

    The exploration in the basin began in 1956 by ONGC. Two years after, the state-run company had found gas in the region and later oil in the Ankleshwar field. More than 2,318 exploratory wells have been drilled in Cambay Basin. Out of 244 prospects drilled, 97 are oil and gas bearing, according to Directorate General of Hydrocarbons.

    “A gross reservoir thickness of about 15 meter was encountered and the well flowed at a rate of 500 bopd through a 6 millimeter bean with a flowing tubing head pressure of 360 pound-force per square inch (psi) on conventional testing,” Reliance said about its latest find.

    The discovery, named ‘Dhirubhai–43’ has been notified to the government and Directorate General of Hydrocarbons (DGH). The commercial potential of this discovery will ascertained with more data gathering and analysis, it added.
     
  17. Quickgun Murugan

    Quickgun Murugan Regular Member

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    Isn't that huge? What is India's oil consumption rate? Will this find make India self-sufficient?
     
  18. sky

    sky Regular Member

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    My maths is poor but 2 billion tonnes of oil is about 14 billion barrels of oil. Thats big news,go and buy shares in RIL.Good news for gujarat as well.

    yippeeeeeeeee......
     
  19. sob

    sob Moderator Moderator

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    There are lot of probables in this exciting find. A couple of years back also ONGC had discovered oil in Gujarat but there is no news of it now.

    The one well drilled one cannot estimate the quantity of oil reserves. More wells will have to be drilled and then only some idea of the reserves can be had.

    Another thing which is very important will be the quality of the crude. Crain oil in Rajasthan has a very significant oil production which will go upto 100,000 barrells per day but the crude oil is very rich in wax for which there is no refinery in India that can handle this crude.

    However if this block pans out well then it's party time for india.
     
  20. Sridhar

    Sridhar House keeper Moderator

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    [​IMG] ONGC finds uranium in Assam; ropes in Uranium Corp
    [​IMG] 14 November 2009

    The Oil and Natural Gas Corp (ONGC) announced today it has stumbled upon a reserve of uranium while carrying out exploration work in an oilfield in Assam.
    "Uranium traces were detected during examination of logs of the Borholla oilfield. Now a joint study is on with the Uranium Corporation to take this entire process forward," said A K Hazarika, director of ONGC's onshore operations, in Guwahati.
    [​IMG]He said traces of uranium were detected during exploration work at the Borholla oilfield in Jorhat district, about 360 km east of Guwahati, Assam's capital. There are more than 20 wells in the Borholla oilfield, apart from several abandoned wells.
    With an estimated Rs500 crore being sanctioned to carry out research and development and pilots for renewable and alternate energy, two state-run monopolies – ONGC and partner Uranium Corp of India - have begun examining logs of over 900 oil and gas wells, mainly in Assam, to look for uranium reserves.

    "Now the process is on to ascertain and examine all the wells in Borholla for uranium reserves," Hazarika told reporters.
    This is the first time that uranium traces have been found in an Assam oilfield, though neighbouring north-eastern states like Meghalaya have rich reserves. "According to preliminary findings, the uranium reserves could be huge in this area," another senior ONGC official said.
    Surveys conducted by the atomic energy department indicate that there could be up to 10,000 tonnes of uranium in and around Domiasiat, about 150 km west of Meghalaya state capital Shillong, the area considered to have the largest sandstone-type deposits in the country.
    Meghalaya's uranium ore reserves are spread over a mountainous terrain in deposits varying from eight to 47 metres underground. However, Uranium Corp was forced to stop exploration work there in the mid-1990s following protests from villagers. Even now, it has not been able to carry out mining in the state.
    Spurred by the recent findings, ONGC is now contemplating setting up a nuclear power plant if its current collaboration with Uranium Corp results in the discovery of uranium in Assam.
    ONGC's Assam oil production is now about 1.2 million tonnes annually. The state has over 1.3 billion tonnes of crude oil and 156 billion cubic metres of natural gas reserves, of which about an estimated 58 per cent is yet to be explored.
    India produces about 30 million tonnes of crude oil annually, with Assam accounting for about five million tonnes. Apart from ONGC, Oil India Ltd (OIL) is the other major exploration firm operating in the north-eastern state.

    domain-b.com : ONGC finds uranium in Assam; ropes in Uranium Corp
     

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