ONGC Acquires Stake in KG Block

India’s largest hydrocarbon explorer, Oil and Natural Gas Corporation (ONGC) has acquired 80% stake in Gujarat government run Gujarat State Petroleum Corporation’s (GSPC) KG-OSN-2001/3 block.

ONGC has bought the entire 80% Participating Interest (PI) of GSPC along with operatorship rights, for $ 995.26 million for the Deen Dayal West Field in the Block.

ONGC will also pay part consideration of $ 200 million to GSPC towards future consideration for six discoveries other than Deen Dayal West Field, which will be adjusted upon valuation of the these discoveries subsequent to approval their Field Development Plans by DGH and the Management Committee of the Block.

The Deen Dayal Field will act as a pivot in developing nearby HP-HT discoveries in Yanam and Godavari PML areas of ONGC, simultaneously.

GSPC’s Deen Dayal block has always been in controversy, including facing allegations from the main opposition Congress Party.