BG, ONGC and Reliance Settle Operatorship Dispute
The dispute between ONGC, Reliance Industries and BG Group over the operatorship of Panna, Mukta and Tapti fields offshore India has been laid to rest. BG has agreed to share the CEO's post in the joint venture on rotational basis.
ONGC would appoint the first CEO to the unincorporated joint venture for a two-year period, after which BG and RIL would take turns at the top job. BG would be in charge of the operations and technical services while RIL would look after finances and commercial interests of the joint venture. Procurements and contracts would fall under ONGC's responsibilities. The joint operatorship agreements are expected to be signed next month in India. ONGC will hold a 40% stake; Reliance Industries and BG Group will each hold a 30% stake.