By OGJ editors
HOUSTON, Mar. 3 -- BG Group PLC and partners Oil & Natural Gas Corp. Ltd. (ONGC) and Reliance Industries Ltd. have agreed to form an integrated joint operating framework to oversee operations of Panna-Mukta oil and natural gas fields and Tapti gas field off the west coast of India.
The agreement ends a nearly year-long standoff between BG and India's state-owned ONGC over the operatorship of the fields (OGJ Online, Jan. 16, 2003). BG completed purchase of the entire share capital of Enron Oil & Gas India Ltd. for $350 million from Enron Corp. in February 2002. These assets included 30% interests in the fields.
Under the proposed framework, operations of the fields will be conducted through a 3-member operator board comprised of a representative from each company. The board's chairmanship will rotate every 2 years, the companies said.
The partners said they plan to invest $700 million over the next few years to develop the fields with "a priority" being to maintain field production and expand output from Tapti gas field.
"We look forward to working closely with our joint venture partners to continue the successful operation of these producing fields," said Nigel Shaw, vice-president, BG India.
ONGC holds 40% share in the fields and Reliance holds 30%.
