Shares of Reliance Industries Ltd fell nearly 3 per cent, wiping out Rs 7,817.22 crore from its market valuation today, amid reports that the probe in its dispute over natural gas with state-owned ONGC was seen turning against the company.
Shares of Reliance Industries Ltd fell nearly 3 per cent, wiping out Rs 7,817.22 crore from its market valuation today, amid reports that the probe in its dispute over natural gas with state-owned ONGC was seen turning against the company.
RIL’s stock was down 2.70 per cent to settle at Rs 889.15 on BSE. During the day, it fell 2.98 per cent to Rs 886.60.
The stock was the worst performer among the 30-Sensex components.
At NSE, shares of the company ended at Rs 889.10, down 2.7 per cent.
Weakness in the stock pulled down the company’s market valuation by Rs 7,817.22 crore to Rs 2,87,944.78 crore.
On the volume front, 2.94 lakh shares of the company changed hands on BSE and over 24 lakh shares were traded at NSE during the day.
“Shares of market bluechip Reliance Industries were in news today after the ongoing probe in its dispute with ONGC was seen turning against RIL,” said Achin Goel, Head: Wealth Management & Financial Planning, Bonanza Portfolio Ltd.
A reputed international consultant D&M is believed to have opined that some natural gas from ONGC’s idling Bay of Bengal gas fields may have flown out through the adjoining, connected KG-D6 fields of Reliance Industries.
DeGolyer and MacNaughton (D&M) in its preliminary observations stated that ONGC’s Godavari Block (known as G-4) is contiguous to RIL-operated Block KG-DWN-98/3 (KG-D6), sources privy to the development said.
The reservoir in the two neighbouring blocks is connected, which means there exists one big gas resource several meters below sea bed and does not recognise man-made boundaries that demarcate blocks of ONGC and RIL.
Sources said D&M, which was jointly appointed by ONGC and RIL to find if the neighbouring fields are connected, is of the opinion that there is no unconnected area in G-4 — i.e there exists no independent gas reservoir in the ONGC block and all the resources are shared with KG-D6.
ONGC had in 2013 claimed that RIL had deliberately drilled wells close to the common boundary of the blocks and that some gas it pumped out was from its adjoining block.
RIL has maintained that it had followed the Production Sharing Contract (PSC) in letter and spirit and done no wrong. It has drilled all wells within its boundary walls.
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