New Delhi, June 22 (PTI) State-owned Oil and Natural Gas Corp (ONGC) may have overstated the natural gas reserves in its much-talked about KG basin KG-DWN-98/2 block, which sits next to Reliance Industries' prolific KG-D6 fields.
Cairn India, which had made four discoveries in the KG-DWN-98/2 block before selling 90 per cent out of its 100 per cent stake in the block to ONGC in 2005, has written to the oil regulator DGH saying the state-owned firm is grossly overstating the reserves in block, sources said.
It believes that "the hither-to discovered oil and gas resources in the block are only marginal to non-commercial, because of their small size and the potential high development costs due to water depth versus the prevailing gas prices."
ONGC estimates that the blocks holds an in-place volume of 25.61 million tonnes of oil and 197 billion cubic metres of natural gas.