ONGC still eyeing BG's stake in Indian offshore fields

India's Oil & Natural Gas Corp. (ONGC) has kept open its options of buying out the 30% equity stake in the Panna-Mukta and Tapti oil and gas fields, which were acquired by BG PLC from collapsed Houston energy firm Enron Corp.

May 1, 2002

By an OGJ correspondent
MUMBAI, May 1 -- India's Oil & Natural Gas Corp. (ONGC) has kept open its options of buying out the 30% equity stake in Panna-Mukta and Tapti oil and gas fields that was acquired by BG Group PLC from collapsed Houston energy firm Enron Corp.

"The offer to buy out BG's stake is still very much on, but we have not yet heard from [BG]," said Subir Raha, chairman and managing director of ONGC, which owns 40% of the equity in these oil fields and remains keen on acquiring sole operatorship. "Even though the issue of operatorship has been resolved amicably [OGJ, Apr. 15, 2002, p. 36], and it has been agreed that ONGC, BG, and the third partner, Reliance [Industries Ltd.], will have joint operatorship, our offer to buy out BG has not been withdrawn."

The offshore fields produce 29,000 b/d of oil and 300 million cu m/day of gas.