India’s largest oil and gas explorer Oil and Natural Gas Corporation (ONGC) has signed definitive agreements to buy out debt-ridden Gujarat State Petroleum Corporation’s (GSPC) entire 80 per cent stake in KG-basin natural gas block for $1.2 billion, as per media reports.
The report further stated that, ONGC will close the deal and pay GSPC the money after regulatory approvals like government nod for transfer of PI (participating interest) and change of operatorship are secured.
ONGC will pay $995.26 million for three discoveries in the KG-OSN-2001/3 block that are under trial production since August 2014. Another $200 million will be paid for six other discoveries for which GSPC has been finalising an investment plan to bring them to production.
Jubilant Offshore Drilling Pvt Ltd and Geo Global Resources (India) Inc hold 10 per cent stake in the block.
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