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<keyword id="6355199" type="CITY" weightage="20" keywordseo="Reliance-Industries">Reliance Industries</keyword>' partners are considering joining the arbitration that the Mukesh Ambani-run firm is planning to initiate against the government for slapping a USD 1.55 billion demand for "unfairly enriching" by producing natural gas belonging to <keyword id="6354737" type="CITY" weightage="20" keywordseo="ONGC">ONGC</keyword>. 
 According to a news agency, <keyword id="3818195" type="UNKNOWN" weightage="20" keywordseo="calgary-based-niko-resources-ltd">Calgary-based Niko Resources Ltd</keyword>, which holds 10 per cent interest in RIL-operated KG-DWN-98/3 or KG-D6 block, said the partners believe they are "not liable for the amount claimed by the <keyword id="6377129" type="ORGANIZATION" weightage="20" keywordseo="Government-Of-India">Government of India</keyword>." 
 In an emailed statement, it said it "is considering joining RIL in invoking the dispute resolution mechanism in the Production Sharing Contract (<keyword id="6367605" type="ORGANIZATION" weightage="20" keywordseo="PSC">PSC</keyword>)." 
 The oil ministry had on November 3 issued a notice to RIL, <keyword id="570359" type="COMPANY" weightage="20" keywordseo="Niko">Niko</keyword> and UK's <keyword id="32848" type="ORGANIZATION" weightage="20" keywordseo="BP">BP</keyword> plc seeking USD 1.47 billion for producing in the seven years ended March 31, 2016 about 338.332 million British thermal unit of gas that had seeped or migrated from state-owned Oil and <keyword id="123483" type="CITY" weightage="20" keywordseo="Natural-Gas-Corp">Natural Gas Corp</keyword>'s (ONGC) blocks into adjoining KG-D6 in <keyword id="55869" type="UNKNOWN" weightage="20" keywordseo="Bay-of-Bengal">Bay of Bengal</keyword>. 
 
After deducting USD 71.71 million royalty paid on the gas produced and adding an interest at the rate of Libor plus 2 per cent, totalling USD 149.86 million, a total demand of USD 1.55 billion was made on RIL, BP and Niko. 
 
RIL had on Friday stated that it "proposes to invoke the dispute resolution mechanism in the PSC and issue a Notice of Arbitration to the Government." 
 
"RIL remains convinced of being able to fully justify and vindicate its position that the government's claim is not sustainable," the company had said, adding it has worked within the boundaries of the KG-D6 block awarded to it and has complied with all applicable regulations and provisions of the PSC. 
 
"The claim of the government is based on misreading and misinterpretation of key elements of the PSC and is without precedent in the oil and gas industry, anywhere in the world," it had said. 
 
BP, which holds the remaining 30 per cent interest, said it is evaluating its options. 
 "BP believes that the action taken is neither in line with well-established global practices nor is it in line with the PSC. We are aligned and working with our partners to evaluate our options to achieve an effective resolution," a <keyword id="367087" type="COMPANY" weightage="20" keywordseo="BP-India">BP India</keyword> spokesperson said. 
 Originally, ONGC had sued RIL for producing gas that had migrated from its blocks KG-DWN-98/2 (KG-D5) and <keyword id="2141893" type="UNKNOWN" weightage="20" keywordseo="Godavari-PML">Godavari PML</keyword> in the KG basin to adjoining KG-D6 block of RIL. 
 Under direction of the <keyword id="6355014" type="ORGANIZATION" weightage="20" keywordseo="Delhi-High-Court">Delhi High Court</keyword>, the government had appointed a one-man committee under retired Justice A P <keyword id="1858" type="PERSON" weightage="20" keywordseo="Shah">Shah</keyword> to go into the issue. The panel in its report on August 29 felt that the government and not ONGC is entitled to compensation. 
 
Subsequently, the ministry asked its upstream technical arm DGH to calculate the amount of compensation and a demand notice was slapped on RIL-BP-Niko. 
 
"The committee has concluded that the contractor's (RIL- BP-Niko) production of migrated gas and retention of ensuing benefits amounts to unjust enrichment, since the production sharing contract (PSC)... does not permit a contractor to produce and sell migrated gas," the November 3 demand note said. 
 
The ministry said it had accepted the Shah committee report and consequently "it has been decided by the government to claim restitution from the contractor of the block KG-DWN- 98/3 for the unjust benefit received and unfairly retained by them".

Partners
 of Reliance might be joining arbitration in $1.55 bn gas
row

<keyword id="6355199" type="CITY" weightage="20" keywordseo="Reliance-Industries">Reliance Industries</keyword> (RIL) has challenged oil ministry’s decision to constitute a panel to examine its dispute with Oil and Natural Gas Corp’s (ONGC). 
 
ONGC has alleged that RIL pumped out gas for its fields. 
 
RIL wants the matter to be resolved through arbitration and not through a committee, which is being headed by Justice AP Shah. 
 
So much so that RIL and its partner Niko did not even participate in the proceedings on December 31. 
 
"RIL does not accept in this particular matter that the Government of India can appoint a 'committee', or the government can deal with any issues on the dispute or for the dispute by constituting a committee," RIL stated in a letter. 
 
Meanwhile, RIL’s rejection to the panel will also delay the resolution to the dispute. 
 
Both RIL and ONGC can approach the court again. 
 
(Image: Indiatimes)

RIL wants dispute with ONGC to be resolved through arbitration, doesn’t approve of panel

<ul><li>The joint venture between <keyword id="10926" type="CITY" weightage="20" keywordseo="Reliance">Reliance</keyword> Industries and BP plans to have 5,500 retail sites and 45 aviation fuel stations over the next five years.</li><li>The fuel retailing stations will branded as Jio-BP outlets. </li><li>The JV is expected to be formed during the first half of 2020, subject to regulatory and other customary approvals.</li></ul>The success of Reliance Jio's telecom venture has made it a household name in India. Now, <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword> wants to extend the brand presence to the fuel retailing stations too. Along with its third-quarter earnings, Reliance Industries announced that its pact with BP will be extended to form a new Indian fuels and mobility joint venture. "The venture expects to expand from RIL’s current fuel retailing network of over 1,400 retail sites and 30 aviation fuel stations across India to up to 5,500 retail sites and 45 aviation fuel stations over the next five years," the company statement said."The retail network will operate under the Jio-BP brand," it added. The venture is expected to be formed during the first half of 2020, subject to regulatory and other customary approvals. BP is a one-third partner in the KG-D6 oil and gas basin along with RIL and Canadian company Niko. The two companies, RIL and BP renewed their partnership last year, eight years after they first inked a pact to work together in India.

Not just mobile services, even Reliance petrol pumps will have 'Jio' brand on them

Bolstered by revenue growth in its oil and gas business and higher margins in its core refining business, the quarterly net profit of <keyword id="6487" type="CITY" weightage="100" keywordseo="Reliance-Industries-Ltd">Reliance Industries Ltd</keyword> (RIL) surpassed market expectations. 
 
Reliance said average gross refining margin increased to $8.7 per barrel for the April-June quarter of FY2014-15 from $8.4 per barrel in the same period a last year. 
 
A 27% increase in sales at its oil and gas exploration and production business helped the Mukesh Ambani-led company register a 13.7% rise in the net profit. 
 Investors have been fretting about Reliance's oil and gas exploration business, which has been suffering a sharp decline in gas output from the <keyword id="1725393" type="UNKNOWN" weightage="100" keywordseo="Krishna-Godavari-D6-block">Krishna Godavari D6 block</keyword> for more than two years. 
 According to Reliance, unexpected geology was the reason behind the decline in output, but this has been rejected by the <keyword id="46040" type="ORGANIZATION" weightage="100" keywordseo="Oil-ministry">Oil Ministry</keyword>, which believes output has fallen due to non-drilling of the promised number of wells. 
 
Reliance and its partners in the block - BP Plc and Niko Resource - are in arbitration with the government over the issue. 
 
Alok Agarwal, the chief financial officer of Reliance, said the company had not made any provisions related to the matter. "We have said that a better gas price is a prerequisite for investment and nothing has changed," Agarwal said.

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Partners of Reliance might be joining arbitration in $1.55 bn gas row

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RIL wants dispute with ONGC to be resolved through arbitration, doesn’t approve of panel

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