After throwing in its hat for operatorship in Tapti gas and Panna-Mukta oil and gas field, Oil & Natural Gas Corporation (ONGC) has now softened its stand.
The corporation is now open to handing over the operatorship in these developed fields to its partners - British Gas and Reliance Industries albeit for better terms.
Subir Raha, chairman and managing director of ONGC said, "We are open to the idea of allowing British Gas or Reliance Industries to take over as the operator at the oil fields. At the moment, we are negotiating to get the best deal."
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British Gas agreed to acquire 30 per cent equity in these oil and gas fields from Enron Oil and Gas India early this month for $388 million. The sale is subject to several conditions including operatorship in these fields. ONGC holding 40 per cent equity and Reliance Industries with 30 per cent stake are the other partners of these fields.
Earlier, ONGC had categorically stated its intent to be an operator as it would result in additional revenues. It had also expressed its intention to the ministry of petroleum and natural gas.
British Gas, which is keen on being the operator of these assets has already started negotiations with the two partners of Tapti gas and Mukta and Panna oil fields, say sources. In fact, it has already offered ONGC equity in its oil fields in Brazil.
However, ONGC is not considering the offer seriously, as the prospects of the field, which is yet to be developed, is not "very good". This is in contrast to the Tapti gas and Mukta/Panna oil fields which were discovered by ONGC and were given on contract to private parties on a product sharing basis.
Equity production from these fields totalled an average of approximately 70 million standard cubic feet of gas per day and 8,200 barrels of oil per day in the year to March 31, 2001.