ONGC targets anger at Enron in letter to DGH

Vol 5, PW 19 (07 Nov 01) Exploration & Production

It's not just operatorship of Panna-Mukta-Tapti that's in limbo.

A whole set offinancial issues also need to be resolved. PETROWATCH learns that on 9th October ONGC director offshore V.

K Sharma wrote to DGH chief Avinash Chandra complaining about Enron. Sharma's letter was sent after a 'Management Committee' meeting on 5th October in Mumbai where several outstanding issues were discussed for the first time.

However, no decision was reached because Reliance - the third partner with 30% - sought time. "The long list of ever accumulating unresolved issues has been a matter of concern to ONGC too," writes Sharma.

"Enron's efforts in this direction have been inadequate, particularly in view of the impending change in ownership, and leaves much to be desired from the international operator. Not only have they failed to resolve any of these issues, there has been a lack of adequate follow-up." A key pending issue, according to Sharma, is management committee approval for several prior work programmes.

Enron maintains that MC approval is not required as money has already been spent but ONGC disagrees. "Management committee approval is a pre-requisite for operation of respective years work programmes and budgets." Sharma also complains that Enron has "not responded to the issue of transfer of geological and geophysical workstations" to Mumbai and that ONGC is "considerably concerned" atnot being compensated "fairly and adequately" for its facilities lent for use by the Enron-led joint venture.