Bombay HC restrains RIL on KG basin gas

MUMBAI: The Bombay High Court has asked Reliance Industries not to create third party rights for the entire natural gas to be produced from its KG basin block.

Acting on a petition for an interim order by Anil Ambani group firm Reliance Natural Resources Ltd, Justice AM Khanvilkar said Mukesh Ambani-led RIL cannot give gas to any other company except NTPC Ltd, RNRL and for its own captive use in the first eight years of production.

RIL plans to begin production from the block lying in Andhra offshore from July 2008, with an initial production of close to 40 million standard cubic meters of gas per day. Peak output would touch 80 mmscmd later.

Earlier on May 3, Khanvilkar had in an interim order restrained RIL from entering into any contract for supplying to a third party the 28 mmscmd committed to RNRL under the 2005 separation agreement between the two brothers.

The court had also directed RIL not to sell the 12 mmscmd, which was to be supplied to RNRL in the event of RIL's deal with NTPC falling through.