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No solution in sight to Tapti gas tussle

Talks between Oil and Natural Gas Corporation, British Gas, and Reliance Industries on jointly managing Panna-Mukta and Tapti oil and gas fields has run into rough weather once again as Indian partners are believed to have disfavoured a fresh proposal by the British company.

After taking over two weeks time-off to respond to the joint operatorship model suggested by the Indian partners, British Gas brought out an operatorship model which ONGC and RIL found to be not in conformity with the memorandum of understanding signed by the three partners for jointly managing the fields, sources close to the negotiations said.

Virtually rejecting the joint operatorship model put forth by ONGC-Reliance, BG suggested at the Joint Operating Committee meeting this week a model quite similar to the solo operating structure of Enron Oil and Gas India, whose 30 per cent shareholding BG bought in January, they said.

Sources said if BG did not agree to giving chief operating officer's post to ONGC and chief finance officer's post to RIL while taking for itself the chief operating officers job, the Indian partners would bring into force the notice for the removal of operator, which was kept in abeyance after BG agreed to jointly manage the fields.

"Its more or less a solo operatorship model on the lines of the existing operator. ONGC and RIL have been involved in only peripheral areas of management," sources said, adding the Indian partners wanted an equal say in management of the fields after the exit of EOGIL.

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