Reliance, BG to Hand over Some Indian Drilling Assets to ONGC
MUMBAI, April 13 (Reuters) - A joint venture led by India's Reliance Industries and BG Group has agreed to hand drilling infrastructure from an abandoned gas field to ONGC Ltd , their junior partner, helping the state-run group develop a large gas reserve nearby, two company sources said.
Executives from Reliance, BG and ONGC signed an agreement in New Delhi on Tuesday night - providing respite in a months-long battle between the partners over the cost of closing the Tapti field off India's west coast.
The sources, with direct knowledge of the matter, declined to be named as they are not authorized to talk to the press.
ONGC plans to invest around 100 billion rupees ($1.50 billion) to develop its key Daman field, which is next to Tapti. This deal will help the group keep a lid on costs.
Reliance, ONGC and BG, now owned by Royal Dutch Shell, could not immediately be reached for comment.
(Reporting by Promit Mukherjee; Writing by Krishna Das; Editing by Clara Ferreira Marques)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Shell Mulls LNG-Hub Network as Use by Ships and Trucks Expands (Jul 11)
- Tanzania Laws Would Allow Govt to Tear Up Mining, Energy Deals (Jun 29)
- Despite Cuts, Big Oil to Expand Production into the 2020s (Sep 05)
Company: ONGC more info
- Subsea Contract Features Made-in-India Element (Oct 03)
- India Tells State Oil Firm ONGC to List Overseas Unit (Aug 21)
- ONGC, Reliance in Talks with Customers to Sell East Coast Gas (Apr 10)