Legal wrangle may delay Reliance KG flows
A legal battle between Reliance Industries and natural gas supplier Reliance
Natural Resources is preventing the signing of sales from the companies’
assets in India’s Krishna Godavari (KG) basin, it was reported.
A Bombay High Court judge in Mumbai today turned down a request from Reliance
Industries for the lifting of a stay preventing it from finding markets for
gas from the projects, adjourning the case till a hearing on 22 July,
India's Economic Times said.
Production of about 40 million cubic metres per day of natural gas from
Reliance assets in the KG basin may start as soon as the end of July, the
newspaper said.
The dispute involves a claim by Reliance Natural Resources that it is entitled
to half of the 80MMcm per day of gas that is expected to flow from the
fields at full capacity.
Reliance Industries is seeking to overturn a stay preventing production till
later this year, when output was originally projected to hit full capacity.
The case is now expected to head to India’s Supreme Court, where either
Reliance Industries of the Indian government will ask for the stay to be
overturned.
Reliance Industries is controlled by billionaire Mukesh Ambani while Reliance
Natural Resources is controlled by his brother Anil Ambani.
The pair have been involved in litigation for a year over a deal for Reliance
Industries to supply gas to Reliance Natural Resources’s power projects
agreed as part of demerger plans for the Reliance group, India’s biggest
corporation.
07 May 2008 00:33 GMT
| last updated:
07 May 2008 00:54 GMT
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