ONGC to revise bid for Panna-Mukta

oil and natural gas corporation is likely to improve its offer of about $300 million for acquiring enron's 30 per cent stake in panna-mukta and tapti oil and gas fields after expiry of british gas deal to buy out the bankrupt energy trader in the offshore fields. ongc, which holds 40 per cent in the three-way joint venture (reliance industries has the balance stake), had at the time of putting in expression of interest quoted over $400 million for buying enron oil and gas india ltd (eogil) but had lowered the offer price at the time of price bids. we are open to negotiations on our offer price for buying eogil stake in tapti gas fields and panna-mukta oil and gas fields, highly placed ongc sources told pti here. eogil, which suffered a major set back late last month when british gas offer to buy its stake in the fields for $388 million expired due to non-resolution of operatorship issue and its parent company enron's bankruptcy filings in us, has not yet communicated with ongc on reopening negotiations, sources said. besides ongc, reliance too was interested in acquiring enron stake in panna-mukta and tapti fields. it is believed to have offered a price slightly lower than $300 million for the same. while both ongc and reliance had staked their claims to takeover operatorship of the fields once the present operator, enron, exits, the state-owned company has once again reiterated its claim for running the show, sources said. ongc has petitioned the petroleum ministry and upstream exploration regulator director general of hydrocarbon for operatorship of the fields basing its claim on expertise in operating such fields and the fact that it carries the maximum cost and investment liability. as per the production sharing contract (psc), investment and costs are shared between the partners in proportion to their shareholdings and as such ongc being the largest shareholder in the field has to bear the maximum cost. besides, it has to carry 100 per cent royalty charges, sources said. ongc had earlier rejected the british gas offer of a monetary compensation for allowing it to take the operatorship in the jv as part of condition to acquire enron's 30 per cent stake in panna-mukta and tapti fields. withdrawing its earlier offer of giving 10 per cent stake to ongc in a gas exploration project in brazil and jointly taking up deepwater exploration studies, british gas had in november offered the state-owned company 11.5 million dollars in cash in lieu of ongoing dispute between the three partners on operating dues and forgoing its claim on operatorship. sources said ongc board found the offer insufficiently responsive. no fresh offer has been made by british gas. we have not heard from either enron or british gas during the recent past, sources added.

ONGC to revise bid for Panna-Mukta

<img src=/photo.cms?msid=386109706 align=left>OIL and Natural Gas Corporation is likely to improve its offer of about $300 million for acquiring Enron's 30 per cent stake in Panna-Mukta and Tapti oil and gas fields after expiry of British Gas deal...

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