BG Seeking Extension for PMT Model

BG Group is seeking more time to consider the joint operatorship model suggested by ONGC and Reliance Industries for jointly managing the Panna-Mukta and Tapti oil and gas fields.

BG, which had in March agreed to jointly operate the fields along with ONGC and Reliance, did not give its comments on the joint operatorship model suggested by the Indian partners.

The state-run company would appoint the Chief Executive Officer while Reliance would appoint Chief Financial Officer in the proposed joint operatorship.

The Joint Operating Committee (JOC) met for the second consecutive day today in Mumbai but missed the deadline of May 6 to thrash out a joint operatorship model.

BG was not in favor of the idea of giving ONGC the coveted post of CEO. ONGC-Reliance had suggested that BG, which is managing the fields since taking over Enron Oil and Gas India Ltd's entire shareholding of 30 percent in the three-way joint venture for $350 million, appoint the Chief Operating Officer to operate and manage the field.

ONGC, with 40 percent shareholding, and Reliance, which holds the remaining 30 percent, had objected to BG's claim for sole operatorship to the field and instead suggested joint management.

When contacted ONGC Chairman and Managing Director Subir Raha said that discussions on joint operatorship were still on. He declined further comment.


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