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India Panna row resolved


UK's BG reaches agreement with ONGC and Reliance



By Upstream staff 

India's Oil and Natural Gas Corporation (ONGC), the UK's BG Group and Reliance Industries have finally reached an agreement on the operatorship of the Panna, Mukta and Tapti fields in the Arabian Sea.

ONGC and BG have been in dispute since the UK company acquired a 30% stake in the fields and operatorship from Enron early last year. Both ONGC and Reliance protested that the transfer of operatorship to BG had violated the right of refusal of the field's existing partners.

"The issue was resolved over the weekend," said a senior government official. The decision follows discussions between ONGC chairman Subir Raha, Reliance Chairman Mukesh Ambani and top leadership of BG.

ONGC and BG are expected to make an official statement to this affect "any hour" now.

Although the exact details of the final agreement are still awaited, it is understood that PMT will now be operated jointly, with BG leading the operations.

ONGC owns a majority 40% stake in the fields, while Bombay-based Reliance Industries controls 30%.


Tuesday, 04 February, 2003, 01:31 GMT  | last updated: Monday, 02 May, 2005, 13:29 GMT

Prize: the Panna oilfield in the Arabian Sea
 

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