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ONGC rejects BG plan for Panna-Mukta

Oil and Natural Gas Corporation has rejected a fresh proposal of the British oil and gas major BG group for formation of an unincorporated joint venture to manage Panna-Mukta and Tapti oil and gas fields, saying it was a ploy by BG to get nominated as the operator.

After the BG group non-executive chairman Richard Giordano broke the ice with a series of meetings with senior ministers including Deputy Prime Minister L K Advani earlier this month, BG submitted a proposal for formation of an unincorporated joint venture that would appoint the operator of the field, informed sources said.

BG insisted that joint operatorships have always been a non-starter and have delayed the decision making process while running down the incorporated SPV (special purpose vehicle) model proposed by the ONGC-Reliance combine.

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