RIL won’t boycott Shah panel in ONGC gas row
In a U-turn, Reliance Industries Ltd (RIL) has decided to participate in the deliberation of one-man A P Shah Committee deciding over the company allegedly producing gas belonging to state-owned Oil and Natural Gas Corporation (ONGC). While Reliance Industries Ltd and Canada’s Niko Resources had initially decided to boycott the panel set up by the government contending it had no legal basis and only arbitration can decide such disputes, its partner BP plc had been cooperating with it.
“At the first meeting of the Shah Committee on December 31, Reliance and Niko said they will not cooperate. However at the last meeting on February 9, they were present,” Oil and Natural Gas Corporation Chairman and Managing Director Dinesh K Sarraf told reporters here.
Participation in the deliberation of the meeting is being seen as a U-turn from the company’s earlier stand of boycotting the proceedings. A Reliance spokesperson did not immediately revert when reached for comments. The panel had given the companies one-month time to make their submissions over the dispute and ONGC has already done that, he said. “I cannot disclose what we have told the Shah Committee,” he said.
Oil and Natural Gas Corporation is seeking compensation from Reliance Industries Ltd for the gas that allegedly flowed from its KG blocks to neighbouring fields of RIL.