BG wants re-work of Panna, Mukta, and Tapti JOA

Vol 5, PW 14 (29 Aug 01) Exploration & Production
     

British Gas is not blind to the history of Panna, Mukta and Tapti or the bad blood between Enron and Reliance.

Solution Re-work the Joint Operating Agreement to make it dispute-proof. "BG is aware of the ongoing arbitration between EOGIL and the partners and the outstanding cash call disputes," adds Shaw.

"BG would prefer to have all the disputes settled prior to takeover and will discuss with Enron how this could be achieved. Also, following takeover BG would be willing to consider the wording of the JOA to ensure that future disputes could be avoided." It adds: "BG is aware of a number of issues and potential disputes with the government (e.

g. customs duty) and other third parties (e.

g. Indian Oil storage tanker dispute).

It is in the interest of all partners that these issues are resolved and the joint venture put on a sound contractual basis. As operator, BG would be committed to resolve all these issues and would be proactive in responding to suggestions from Reliance to reduce the risk of disputes in the future."When does BG hope to close the deal "British Gas is seeking to complete the purchase of EOGIL during August.

BG is looking to secure the support of Reliance for the approach described above. If you are able to provide such support then BG will commit to work with you to produce detailed action plans in each of the areas discussed."