Relying on, partners will SC oppose SC’s $1.7 billion gas dispute action in SC’s $1.7 billion gas dispute
The consortium partners also filed separate appeals against the February ruling of the Delhi High Court. No dates so far
The board of justice on February 14 overturned its May 2023 ruling, which upheld the arbitration award of July 24, 2018 and rejected the government’s plea, accusing RIL and its foreign partners (the Canadian partners based on BP PLC and NIKO) of “free fraud” of Canada Resources (Canadian Niko Resources) (inflicted over $172.9 million) without fueling. Development.
The HC’s order found “patent illegality” in an arbitral award worthy of intervention and held that the tribunal violated public policy on July 24, 2018.
The consortium received a $2.81 billion demand notice from the Ministry of Oil and Gas in March following the HC verdict.
RIL challenged HC’s findings in appeal that the arbitration award originated from domestic arbitration, not from international commercial arbitration. It told the Supreme Court that it could not be a domestic arbitration, as the two alliance partners were foreign companies. Ambani further raised the challenge of reevaluating the evidence, which was not allowed in the petition under Article 34, let alone a petition under Article 37 of the Arbitration and Mediation Act. The government criticized “limited and intentional competition” and paid criticism, and approved, and criticism, and criticism. It said Ambani knew its connectivity to the adjacent ONGC neighborhood in 2003.
Lille opposes the government’s position, saying that if both sides have gasoline, namely the RIL neighborhood and the ONGC neighborhood, it can only indicate a common development. However, Parekh believes that the Hydrocarbon (DGH) Bureau’s instructions to jointly develop is technically unfeasible because the two adjacent blocks are not in a similar stage of development.
Lill said that under DGH’s supervision, it is the contractor working for the government. It is in the government’s interest to extract natural gas quickly and cheaply. If both ONGC and RIL are invested, then in fact, the cost will increase the damage to the government. Its lawyers told the High Court that the withdrawal of RIL actually increased the government’s profit percentage.
In November 2016, the government proposed a demand of $1.55 billion in interest, and a request of $175 million to revise additional cumulative profit oil, as unjust enrichment was removed, established by contractors of KG-DWN-98/3 Block in Bearishna-98-98/3 block. It claims to indicate “fraud” and “unjust riches” by evacuating and selling gasoline migrating from the ONGC blocks (Godavari PML and KG-DWN-98/2), thus adjacent to the RIL’s neighborhood.
In the gas immigration dispute case, the consortium led by RIL, three members led by Singapore arbitrator Lawrence Boo, rejected the government’s claim at the 2-1 awards ceremony in July 2018 and ruled that the production-sharing contract did not prohibit the contractor from moving from sources other than them to the contract for production and sale of gas.
The government appealed the arbitration award at the HC in 2018. In May 2023, the single judge ruled RIL by upholding the arbitration award, and the government moved to the HC’s judicial court.
The controversy occurred in 2013 when the state-owned ONGC informed DGH that the gas tank in its block was related to the gas tank of RIL. However, RIL then states that some of the gases in the ONGC block “migrate” to their block.
In 2014, ONGC moved the HC, complaining that the Reliance Block and ONGC blocks appear to be connected and that gas migration may occur between them. The court rejected the petition, directing the U.S.-based consulting agencies DeGolyer and Macnaughton (D&M), to review the issue.
D&M said in 2015 that the development of RIL blocks would be “able to deplete OGIP (primitive gas) on the KGOS-IG block”, which concluded that “a comprehensive analysis shows the connectivity and continuity of reservoirs in the blocks across blocks operated by ONGC and RIL.”
In November 2016, the government made the above request, prompting RIL to invoke international arbitration.
