ONGC rejects British Gas offer

Mumbai: 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 field.

British 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.