India claims $1.55 billion for natural gas migration to KG-D6 block

Partners in the deepwater KG-D6 block off the southeast coast of India say the Indian government is seeking about $1.55 billion for natural gas said to have migrated from neighboring blocks.

Reliance Industries Ltd., BP PLC, and Niko Resources Ltd. received a communication from India’s Ministry of Petroleum and Natural Gas late last week. RIL has 60% in the block, BP 30%, and Niko 10%.

Reliance, the operator, said it has worked within the boundaries of the KG-D6 block and has complied with all applicable regulations and provisions of the production-sharing contract (OGJ Online, July 1, 2013).

RIL said the claim by the government “is based on misreading and misinterpretation of key elements of the PSC” and is without precedent in the industry. The company proposes to invoke the dispute resolution mechanism in the PSC and issue a notice of arbitration to the government.

Niko said it believes the group is not liable for the amount claimed by the government of India.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Storm Impact Analytics for Utilities

In recent years, increasingly volatile and extreme weather events have significantly impacted the...

Reach New Heights: Six Best Practices in Planning and Scheduling

These 6 best practices have created millions of dollars in value for many global companies. Learn...

Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...