BG Seeks Time For Panna-Mukta & Tapti Decisions

BG Group is still seeking more time to decide on joint operatorship of Panna-Mukta and Tapti oil and gas fields with Indian partners ONGC and Reliance Industries. "British Gas at the June 28 Joint Operating Committee meeting sought 2 more weeks time to respond to the joint operatorship model put forth by the Indian parnters," sources close to the negotiations said.

Both ONGC and RIL, who had proposed a power sharing model that allocated work to all the partners according to their expertise, agreed to the BG's fourth request for an extension in the deadline to work out a joint operatorship model.

The Indian partners, who between them have a 70 percent interest in the fields, have suggested that ONGC be given Chief Operating Officer's post and RIL the post of Chief Finance Officer, while BG appoints the Chief Operating Officer to the joint venture. Sources said ONGC at last week's meeting suggested that the operatorship model suggested by it be adopted on a trial basis for 5-years and if it failed the partners would be free to adopt any other model.

BG India Director Praveen Tandon said talks between the three partners were continuing and BG was committed to finding a solution that "maximize efficiency and value while addressing concerns of all partners."

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