Govt nominates ONGC to operate Panna-Mukta fields

The government has nominated Oil and Natural Gas Corp to operate the Panna-Mukta oilfields after the contract with Reliance IndustriesNSE -0.82 % and Shell runs out in December, according to an ONGCNSE 0.93 % executive.

Reliance and Shell each own a 30% participating interest in Panna, Mukta and Tapti (PMT) fields, while ONGC holds the balance 40%. Tapti stopped production three years ago while the other two fields have been sharply declining, prompting Reliance and Shell to decide on exiting the fields at the end of the 25-year lease in December.

The government has, therefore, directed ONGC to operate Panna and Mukta fields after the two private companies exit on December