Reliance Industries (RIL) has staked a claim with the directorate general of hydrocarbons (DGH) to be an operator in the Tapti gas and Panna/Mukta oil fields. Reliance holds 30 per cent equity in these offshore oil and gas operations.
DGH is a regulatory body which monitors the execution and management of the production sharing contracts on behalf of the government. Moreover, the objective of DGH is to promote sound management of the petroleum and natural gas resources, having a balanced regard for environment safety, technological and economic aspects of the petroleum activity.
With RIL throwing in its hat for the operatorship, it is expected to be yet another impediment for British Gas' deal to acquire 30 per cent interest of Enron Oil and Gas India Ltd (EOGIL) in these oil and gas fields.
On October 3, BG announced that it has agreed to acquire EOGIL's stake in Tapti gas field and the Panna/Mukta oil and gas field and 62.64 per cent interest in the exploration licence of CB-OS/1 for $388 million. The deal for BG is conditional for acquiring operatorship of these field. EOGIL had been the operator of the field.
A RIL spokesman, however, refused to comment on the issue.
The Oil and Natural Gas Corporation (ONGC), which holds 40 per cent equity, is the other partner for the Tapti gas and Panna/Mukta oil field. The corporation's chairman and managing director Subir Raha has already made it clear that the it wants to be an operator for these fields. ONGC has already informed the ministry of petroleum and natural gas about its intentions.
Considering ONGC and RIL unwilling to hand over operatorship of the field, industry sources claim that it would take sometime for EOGIL to conclude its deal with BG.
ONGC officials claim that the change in ownership for 30 per cent equity does not translate in automatic transfer of operatorship to the new owner. "The operatorship is a matter of consensus amongst the joint venture partners and cannot be on transferable basis", sources point out. The operatorship is a critical issue as it entails incremental revenues for the operator.
