New Delhi : The government is likely to appeal against a ruling by an international tribunal that rejected its $1.55 billion claim against Reliance Industries (RIL) and its partners for allegedly siphoning gas from deposits they had no right to exploit.

A three-member international arbitration tribunal by a majority vote held that Reliance could contractually produce and sell any gas that might have migrated from adjoining fields of state-owned ONGC into its area and that it was not obligated to seek prior permission of the government for doing so.

With one member dissenting, the panel held that the production sharing contract for eastern offshore KG-D6 fields “does not prohibit but permits” RIL ”to produce and sell gas which migrated into the sub-sea reservoir lying within (its) Contract Area from a source outside the Contract Area”.

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