RIL – ONGC Gas Row

Reliance Industries Ltd (RIL) and Oil and Natural Gas Corporation (ONGC) are neighbours in the Krishna Godavari (KG) basin. While RIL started commercial production of gas in April 2009, ONGC is just in exploration / discovery mode even though it was allocated two blocks way back 1997 & 2005. Since ONGC was sluggish, RIL found an opportunity. It drilled four wells too close to ONGC’s blocks (within 50 meters to 350 meters distance) from the blocks of ONGC. These wells were constructed in angular manner so that the gas reserves of ONGC could also be picked up. RIL was drawing out ONGC’s gas from these wells since April 2009.