How to re-write the minutes of an MC meeting

Vol 6, PW 11 (31 Jul 02) Exploration & Production
     

SIMMERING ANIMOSITY between ONGC and the DGH is nothing new so it was with some surprise that Ravva partners Cairn Energy, Marubeni and Videocon received identical six-page letters from the DGH and ONGC asking for changes in the minutes of Management Committee meeting No.

22, held on 26th April. "Everything about the two letters is identical, except the different letterheads!" One issue relates to profit petroleum.

DGH and ONGC want to include the following: "DGH asked the contractor parties to make full payment of profit petroleum due to Government of India. DGH indicated that explanations are not required as it is in line with the provisions of PSC which is quite clear in this regard." And want to delete the following: "The companies insisted that DGH needs to provide them with detailed reasons for disallowing certain past costs for the computation of Post Tax rate of Return (PTTR).

Videocon and Ravva Oil agreed with this approach." A second dispute centres on six leaking ONGC gas wells at Ravva. Here, DGH and ONGC want deletion of the following: "DGH informed that the Government has already advised the Operator to repair the old ONGC drilled leaking wells and go for cost recovery.

DGH stated that the risks and liability can be studied and considered for cost recovery." Controversially, DGH and ONGC want to add: "Chairman stated that ONGC and the government has already informed the operator that as per PSC provisions, the responsibility to repair the leaking wells and to maintain the contract area, including environmental safety lies with Contractor." Complains a source: "How can we agree when this is not what transpired at the meeting"