Royal Dutch Shell (RDS.A, RDS.B) and Reliance Industries are planning to leave the Panna-Mukta oil fields when their production-sharing contract with the Indian government expires in December, the Economic Times reported, citing sources.
Both companies are locked in an arbitration with the government over the state's share of revenue from the Panna, Mukta and Tapti (PMT) fields, which produced 1.08 million barrels of crude oil and 13.5 billion cubic feet of natural gas in the fourth quarter. Shell and Reliance Industries each own a 30% participating interest in the oil fields, according to the report. State-run Oil & Natural Gas Corp., or ONGC, which holds 40% of the PMT fields, is not a party to the arbitration but will have to honor the arbitration award.
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