BG Resolves Operatorship Dispute
BG Group has resolved the operatorship dispute with its Indian partners over the Panna, Mukta and Tapti offshore fields. BG has agreed with ONGC and Reliance Industries to jointly manage the fields formerly operated by Enron Corp.
This dispute started when BG stated it would be the operator of the fields after acquiring Enron's 30% stake for $350 million earlier this year.
The three companies have decided to divide the operatorship responsibilities with an ONGC official taking over as chief executive for the company established to run the fields, BG looking after technical aspects and Reliance taking charge of financial matters. An agreement that would finalize this arrangement is expected to be signed later this month. ONGC has a 40% interest and Reliance has the other 30% interest in the fields.