Anil Ambani group offers to submit gas sharing pact copyOctober 7th, 2008 - 8:43 pm ICT by IANS
Mumbai, Oct 7 (IANS) Anil Ambani’s Reliance Natural Resources Ltd (RNRL) counsel Ram Jethmalani Tuesday offered to submit the contents of the agreement between the Ambani brothers relating to the supply of natural gas from the Krishna-Godavari basin during the hearing of the case in the Bombay High Court.However, Reliance Industries Ltd (RIL) - led by Mukesh Ambani, elder of the Ambani siblings - said if a copy of the agreement is submitted before the court, contents of the documents should not be made public.
Earlier, RIL counsel Harish Salve expressed his disinclination for an out-of-court settlement.
According to the Anil Ambani group, RIL had contracted to supply 12 million standard cubic metres of gas per day (MMSCMD) to the state-run National Thermal Power Corp (NTPC) at $2.34 per unit, and it was agreed that if the gas was not supplied, it would be sold to RNRL.
RIL had also agreed to supply the next 28 MMSCMD of gas to his company for power and other projects, also at $2.34 million British thermal units (mmbtu), for 17 years, the group said.
“In other words, the supply of gas to Reliance Natural was contracted at the prevailing market price - determined through rigorous process of international competitive bidding and on the same terms and conditions as the NTPC contract,” Anil Ambani had said recently.
An earlier interim order, in which the court had restrained RIL from selling the gas or from entering into any contract with a third party, has lapsed. RIL was subsequently planning to start production from the basin.
The court had also restrained RIL from entering into contracts to sell the gas from this basin - known in official jargon as KG-D6 gas - with companies other than RNRL and NTPC.
It had also asked the two sides to settle the dispute within four months, but they failed to reach an agreement within the stipulated time frame.
RNRL has claimed at least half of the 80 million standard cubic metres of gas per day that is envisaged from the fields off the Andhra Pradesh coast - said to be the country’s biggest source of hydrocarbons today.