The deal by
British Gas to buy 30 per cent equity stake in the Panna Mukta
Tapti oil and gas fields has run into trouble.
On 27 November 2001, ONGC
rejected British Gass $388-million offer in lieu of which the
UK company wanted the corporation to withdraw its claim for
operatorship rights of the
Gas has put sole operatorship as a precondition for going ahead
with the deal for buying Enrons stake in the three-way joint
venture. The venture also has ONGC and Reliance
as 40 per cent and 30 per cent stakeholders respectively.
After the board meeting,
ONGC said in a statement: "The board has noted that the
British Gas offer is not sufficiently responsive
for ONGC to agree to accept the British company as
operator of Enron."
British Gas had earlier
offered ONGC equity in its exploration acreage in Brazil and a
settlement in the cash-all dispute in lieu of the operatorship
rights. But ONGC evidently disliked the offer.