Friday, November 14, 2025

Migrating hydrocarbons

The exploratory and industrial development of deposits gives rise to a phenomenon where mining companies fight for hydrocarbon volumes with both the state and investors working on production sharing agreements, because the "volume" of a special permit for subsoil use is not always possible to increase.

Ideas arise, such as an investor extracting hydrocarbons from a neighboring field.

It is clear that the initiators are filing lawsuits.

Let us consider such a case as “Union Of India vs Reliance Industries Limited & Ors. on 14 February, 2025”, considered on 14 February 2025 by the High Court of Delhi (FAO(OS) (COMM) 201/2023).

In it, the court, having taken a broad approach to the consideration of the case, came to the following conclusion.

Paragraph 117 Decision of the High Court of Delhi: «reservoir connectivity could not have been deduced by the learned by mere conjectures and surmises. Without adverting to the merits involved, we can say that though RIL has extracted the 'Migrated Gas', however, the said extraction/ exploration of the 'Migrated Gas' without any 'explicit and express permission' cannot be said to have been in 'most efficient manner for betterment of the Union', which did not belong to it and which did not entitle them to reaping any profits therefrom».

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