BG, RIL, ONGC set to put $3 bn in Panna-Mukta-Tapti | business | Hindustan Times
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BG, RIL, ONGC set to put $3 bn in Panna-Mukta-Tapti

business Updated: Jan 19, 2012 22:45 IST
Anupama Airy

UK energy major British Gas said it is ready with a multi-billion dollar investment plan along with its partners Reliance Industries Ltd (RIL) and state-controlled ONGC for sustaining the oil and gas production from the Panna-Mukta-Tapti (PMT) fields on the western offshore. Sources close to the company said the investment could run anywhere close to $3 billion (Rs 15,500 crore).

“The plan for PMT fields has already been submitted by BG and its partners to the government for maintaining the current oil and gas production from the fields for the next 10-15 years,” BG India president and CEO, Walter Simpson told Hindustan Times.

"The contract for the PMT fields (currently producing over 30,000 barrels of oil per day) ends in 2019 and we have an extension for another 10 years," he said.

Setting aside speculations over its exit from India, Simpson said, “We have no plans to leave India and these are pure speculations. We constantly keep our portfolio under review as any business does, which is to maximise the value for its shareholders.”

Talks over BG’s exit from India had started after the company announced plans to exit the three offshore blocks in the KG basin, where ONGC is its partner.

Further, the company has also initiated talks to sell its 65% stake in Gujarat Gas, the city gas retailing firm in Gujarat.

While Walter refused to comment over any plan to exit from Mahanagar Gas in Maharashtra, sources said that BG plans to exit from it later as gas retailing and marketing are not its core business area.