• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Pratim Ranjan Bose

Kolkata , June 3

Delay in receiving the consent of Reliance and British Gas is holding Panna-Mukta-Tapti (PMT) joint venture in firming up the crude offtake agreement with Mangalore Refineries and Petrochemicals Ltd (MRPL). ONGC, the other partner and operator of the joint venture, has already agreed on the same.

Though negotiations are on an advanced stage between the joint venture partners and MRPL, according to sources, there are still some differences of opinion between the private partners and MRPL on the methods of calculation of handling charges. The sources, however, expected that things would be sorted out shortly.

MRPL, an ONGC subsidiary, had previously proposed to lift the Bonny light grade crude oil produced by PMT for the remaining period of the product-sharing contract. Commenced in 1994, the contract is valid till 2019 defining the lifetime of the respective oil and gas fields.

Change in nomination

At present, IOC is nominated to lift the crude oil production. However, MRPL has proposed to pay higher transportation and handling charges, which had always been a bone of contention between PMT and IOC.

Following a consensus among the joint venture partners on MRPL's proposal, PMT will formally approach the Union Ministry of Petroleum and Natural Gas for change in nomination.

PMT currently produces close to 1.7 million tonne of `associated crude'. The production will move up to 2.3 mt in late 2007 following the development of two more platforms.

More Stories on : Outlook | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
BV Biologicals to offer manufacturing facilities

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line