(ET)
The government has nominated Oil and Natural Gas Corp to operate the Panna-Mukta oilfields after the contract with Reliance Industries and Shell runs out in December, according to an ONGC executive. Reliance and Shell each own a 30% participating interest in Panna, Mukta and Tapti (PMT) fields, while ONGC holds the balance 40%. Tapti stopped production three years ago while the other two fields have been sharply declining, prompting Reliance and Shell to decide on on exiting the fields at the end of the 25-year lease in December. The government has, therefore, directed ONGC to operate Panna and Mukta fields after the two private companies exit on December.
21. ONGC is preparing to take over facilities of the two fields and put in place teams that will operate the fields, the executive said. Once it takes over, ONGC will reassess the fields and figure out their investment needs, he said. The output from these fields will attract royalty and cess as are applicable to production from any nomination field, the executive said.
