Supreme Court names Justice Desai as sole mediator in KG Basin gas dispute

The Supreme Court has appointed Justice Ranjana Desai (retired) as the sole mediator to resolve the escalating dispute between Reliance Industries Limited (RIL) and the Centre over gas migration in the KG-D6 block of the Krishna-Godavari Basin. The Bench directed the mediator to seek assistance from two domain experts while conducting the mediation proceedings.

The dispute centres on allegations that RIL extracted natural gas that had migrated from adjoining blocks operated by state-owned Oil and Natural Gas Corporation (ONGC) into RIL's KG-D6 block. The government has accused RIL of improperly "siphoning" gas resources, a claim the company has firmly rejected.

RIL has maintained that it did not unlawfully extract gas from ONGC's neighbouring blocks, contesting the Centre's narrative around the alleged gas migration and subsequent extraction. The company argues that its operations in the KG-D6 block have been conducted in full compliance with applicable regulations and contractual obligations.

The appointment of Justice Desai represents the Supreme Court's attempt to facilitate resolution through mediation rather than protracted litigation. The inclusion of domain experts is expected to provide technical clarity on complex geological and hydrocarbon engineering issues that underpin the dispute, potentially expediting the mediation process and enabling the parties to reach a negotiated settlement.

The matter has significant implications for India's offshore energy sector, particularly regarding resource management and operational protocols in overlapping exploration blocks. The mediation outcome could set important precedents for resolving similar disputes between private operators and state agencies in India's hydrocarbon exploration regime.