Shell India drops plan to sell 30% stake in Panna-Mukta

12 February 2018

Shell India, the operator of the Panna-Mukta-Tapti fields, a joint venture, has shelved its plan to sell its 30% stake in the Panna and Mukta oil fields.

Source: Google

Panna and Mukta are oil fields while Tapti is a gas field located near state-run Oil and Natural Gas Corp.'s (ONGC) Mumbai High complex. Shell and Reliance Industries Ltd hold 30% stake each in the Panna-Mukta-Tapti (PMT) joint venture, while ONGC holds the remaining 40%.

Production sharing contract (PSC) for the PMT fields is scheduled to expire in December 2019 and the three partners have not applied for an extension of the same.

During the Q3 of this fiscal, the Panna-Mukta fields produced 1.32 M barrels of crude oil and 15.2 bcf of natural gas, a drop of 10% in crude oil and 3% in natural gas on an on-year basis.

The Tapti field is being abandoned due to a significant drop in reserves. It will be the first offshore field to be abandoned in India.