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New Delhi, Oct. 12: At least 9 billion cubic metres of natural gas, worth about Rs 9,000 crore, belonging to ONGC Ltd in the Krishna-Godavari basin may have migrated to Reliance Industries' adjoining KG-D6 fields and explored by the private player as the two blocks are contiguous, according to a draft report by US-based consultant DeGolyer and MacNaughton (D&M).
D&M submitted the draft report to the two companies and the directorate general of hydrocarbons (DGH).
At an average gas price of $4.2 per million British thermal unit (mBtu) and an exchange rate of Rs 60 against the dollar, RIL could have drilled gas worth Rs 8,000-9,000 crore that belonged to ONGC, analysts estimated.
The two parties will now comment on the draft findings before D&M prepares the final report.
The hydrocarbon regulator had erred in drawing the boundaries of the blocks by ignoring seismic data and drew lines that bifurcated the reservoir rather than making it part of one block, the report said.
Sources said the consultant stated that around 59.5 billion cubic metres (bcm) of gas have been extracted by RIL from its block KG-DWN-98/3, commonly known as KG-D6. Of this, around 9bcm flowed from ONGC's adjacent block - KG-DWN-98/2.
State-run ONGC moved the Delhi high court, alleging theft of its gas by RIL by drilling wells close to its block.
On September 10, the court rejected ONGC's petition and directed the government to take a decision within six months after it receives report from an independent panel.
D&M found that gas flowed out from a few wells drilled by RIL, including A5, A9 and B8, which were closer to the ONGC block. In addition, gas reservoir from another area - G4, which belonged to ONGC and adjacent to its block KG-DWN-98/2, is also connected to RIL's KG-D6.
The challenge before the government will be to decide how ONGC will benefit from this situation. If the government follows the production sharing contract, it can only suggest joint development of the field. Analysts said joint development was not possible as RIL began production from KG-D6 in April 2009, while ONGC is yet to produce oil or gas from its block.