The Dispute over Krishna-Godavari Gas

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  • Topic: Mukesh Ambani, Dhirubhai Ambani, Reliance Industries
  • Pages : 8 (3228 words )
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  • Published : March 10, 2011
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2009-2011
RIL & RNRL KG GAS DISPUTE
OIL AND GAS MARKETS SIIB Energy & Environment
Ankit Anil Gupta PRN 09020243008
RIL & RNRL KG GAS DISPUTE 2009-2011
MBA Energy & Environment, SIIB Page 2
Table of Contents
BACKGROUND ....................................................................................................................................... 3 BRIEF CASE TIMELINE .............................................................................................................................. 3 HOW ISSUE EVOLVED? ............................................................................................................................ 4 WHY GAS PRICE WAS RISEN UP BY THE RIL? ........................................................................................... 5 WHAT WAS RNRL DEMAND? .................................................................................................................. 5 RNRL ACCUSATIONS ON RIL AND ON GOVERNMENT OF INDIA .............................................................. 6 COURT ROUNDS ..................................................................................................................................... 6 BOMBAY HIGH COURT ................................................................................................................................ 6 SUPREME COURT ....................................................................................................................................... 6 ROLE OF MODEL PRODUCTION SHARING CONTRACT IN DISPUTE .......................................................... 7 PROFIT AND LOSS SCENARIO….. ............................................................................................................. 8 ANY LOSS TO RIL AT $2.34 ??? ..................................................................................................................... 8 GOVERNMENT IN PROFIT OR IN LOSS .............................................................................................................. 9 REVISED PACT AS PER SUPREME COURT ................................................................................................. 9 CURRENT STATUS OF RIL FOR THE KG GAS ........................................................................................... 10 PICTURES OF KRISHNA GODAVARI BASIN BLOCKS ................................................................................ 11 BIBLIOGRAPHY ..................................................................................................................................... 12 Background

Krishna-Godavari basin the first thought which comes to in our mind is of the KG- Gas, RIL and RIL and RNRL issue over the case which was the First Modern MAHABHARAT over the gas in the Indian 21st century. What is the KG Gas or rather the where does the origin of KG basin and the KG gas comes. It all started in April 2000 when under the NELP when on the 12 blocks the bid was won by the RIL and D-6 block becoming the heart of the issue. To be precise we can say that the PSC of the D-6 block which was made in between the Government of India RIL & NIKO (NIKO was partnering RIL in 2000) is the main issue of this dispute. KG basin has importance because of its geographical wide spread i.e.., onshore; the KG basin has an area of about 28,000 sq km, while the offshore area is estimated at 21,000 sq km till a depth of 200m and another 18,000 sq km between 200m and 3000m. But in the year 2002 there was sad demise of Mr. Dhirubhai Ambani, who was the one man army of the reliance but later as company has to progress Mr. Mukesh Ambani became the CMD of RIL and Mr. Anil Ambani became the Vice - President of RIL. But Later in 2005 reports started to arise regarding the fracturing relationships of Mukesh and Anil in RIL. Hence a family separation was made in which Ms. Kokila Ambani was the key member and distributed the business among the two brothers. Brief Case Timeline

2002: RIL found...
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