abce certificate
Saturday, 30 August, 2008, 11:40 GMT | more prices >>

Showdown off Bombay


ONGC prepares for battle with BG over Panna, Mukta and Tapti



By Upstream staff 

India's Oil and Natural Gas Corporation (ONGC) is preparing to try and oust the UK's BG as operator of the Panna, Mukta and Tapti (PMT) oil and gas fields in the Arabian Sea off Bombay.

ONGC, which owns a majority 40% stake in the fields, is planning to approach the Indian government with its case and is being backed by fellow stakeholder Reliance Industries (30%).

ONGC and BG have been entangled in a massive row since the UK company acquired a 30% stake in the fields from Enron early this year and replaced the collapsed US company as operator of the fields.

ONGC wants the fields to be operated jointly by all the three partners. BG, however, has serious reservations and is refusing to accept the model.

"It appears that ONGC and BG are heading for an ugly showdown," said an ONGC director.

"The situation can still be saved if ONGC chairman Subir Raha and BG boss Frank Chapman could meet for a tete-a-tete with a resolve to find a solution," the director added.


Friday, 22 November, 2002, 09:21 GMT  | last updated: Monday, 02 May, 2005, 13:03 GMT

e-mail this article to a colleague


to email:  from:
comments: