Krishna Godavri Basin (03.09.09)

Krishna Godavari Basin Dispute

Ambani Brother’s Gas Dispute The Krishna Godavari basin dispute is an ongoing dispute between Reliance Industries (RIL) and Reliance Natural Resources (RNRL) over the pricing of natural gas found in the Krishna Godavari basin

Krishna Godavari Basin

Krishna Godavari Basin

Krishna Godavary Basin Around 7 trillion cubic feet of natural gas was discovered by Reliance in the Krishna Godavari basin in October 2002

Dheru Bhai- 24 well Dheru Bhai- 25 well

Partition

Partition In 2005, the Reliance Group was split between Anil Ambani and Mukesh Ambani

Partition RIL going to Mukesh Ambani and RNRL to Anil Ambani

Partition A family pact was made in 2005 in which RIL was to supply 28 million cubic meters of gas a day at $2.34 per million units to RNRL for 17 years

Controversy

Controversy No contract between parties.

Controversy

RNRL's main contention was that RIL should supply gas on the terms it had agreed with NTPC.

Controversy RNRL was not happy with the terms of the Gas Supply Master Agreement

Controversy RIL claims that the supply of gas from KG Basin to ADAG was not part of the division.

Controversy Anil

Ambani

accused

the

petroleum ministry of favoring RIL.

Government Stand on Krishna Godavari Basin

Government Stand

Government wants early solution to the gas dispute.

Government Stand

Krishna

Godavari

national Property.

basin

is

a

Government Stand 30 MPs of left front asked the government to take over the distribution

and

gas from Basin.

marketing

of

Government Stand

RIL has to pay the royalty to Government.

Government Stand

Government has the right to fix the price & also dictate whom RIL sell to.

Court Verdicts

Court Verdicts Bombay High Court Ordered RIL to supply the gas as per the original statement.

Court Verdicts The Bombay High Court allowed Reliance Industries to sell gas from KG basin at the government-approved price of USD 4.20 per mmBtu as an interim measure, while reserving judgment on a case brought by RNRL.

Court Verdicts THE Bombay High Court is likely to deliver the final judgment over the supply of gas from Reliance Industries to Reliance Natural Resources (RNRL) when it re-opens after summer vacation.