*The Govt is asking Reliance to pay up $1.5 billion! Here is the full story👇* Reliance Industries is caught up in a legal battle with the Indian government over a compensation of $1.5 billion for a while now. This traces back to when New Exploration Licensing Policy (NELP), allowed private and foreign companies to bid for oil and gas exploration blocks, an area which was previously dominated by state-run giants like ONGC and OIL. In 2000, RIL won one such block in the Krishna-Godavari (KG) Basin, right next to the one allocated to ONGC. By 2009, Reliance had begun extracting gas, while ONGC had yet to start operations. The dispute began when ONGC discovered in 2013 that underground gas reservoirs in both blocks were connected, causing gas to migrate from its block into RIL’s. Since Reliance had started production first, it had already extracted and sold a portion of ONGC’s gas, leading to a long legal battle. This dispute could have been avoided with a unitisation agreement. Look, oil and gas fields often transcend land and water boundaries, sometimes even creating conflicts. So the agreement helps solve this problem by treating shared reservoirs as a single entity. So, should Reliance pay the government $1.5 billion? Read the full story in today's newsletter and follow Finshots for more! https://shorturl.at/4Su2H