Chennai Petroleum sets price range for PY-3 crude

Vol 6, PW 12 (14 Aug 02) News in Brief

It will be a few more months before Chennai Petroleum signs a crude oil sales agreement with the offshore PY-3 consortium.

We are told that Hardy Exploration, operator at PY-3, accepts Chennai Petroleum's price offer of dated Brent minus 45 cents a barrel, but the other consortium partners disagree. "Price is the main point of dispute," reveals a source.

"The other consortium partners want more. Discussions are going on.

It might take a few months." Chennai Petroleum has authorised its director finance and director operations to negotiate and finalise the price within the range of dated Brent minus 45 cents and dated Brent minus 25 cents a barrel. The PY-3 consortium has Hardy Exploration as operator with 18%, HOEC and Tata Petrodyne with 21% each and ONGC with 40%.

Currently the consortium is paid a provisional price.