ONGC buys 80% stake of GSPC

Oil and Natural Gas Corporation Ltd. (ONGC) informed on Friday that the company has bought 80% participating interest (PI) and operatorship in NELP-III Block KG-OSN-2001/3 (‘Block’) of Gujarat State Petroleum Corporation (GSPC) in Krishna Godavari Basin offshore.
 
GSPC remains in the Block holding 10% PI which they acquired from the outgoing partner Geo Global Resources while the other partner in the block is Jubilant Offshore Drilling Ltd. with 10% PI. ONGC has taken over the Block against a purchase consideration of USD 995.26 million for Deen Dayal West Field in the Block.
 
ONGC has also made an advance payment of USD 200 million to GSPC in respect of future consideration for six discoveries other than Deen Dayal West Field. This acquisition will help the ONGC to enhance natural gas production from domestic fields on a faster pace, more so with a goal to reduce import dependency in energy by 10% by year 2021-22.
 
Through successful exploration efforts, ONGC intends to develop an HPHT corridor of oil and gas in the Krishna Godavari Basin. ONGC also finds opportunity to bring the Cluster-I gas discoveries of KG-DWN-98/2 NELP Block and adjacent nomination blocks on a fast track development through utilisation of the infrastructure of Deen Dayal West Field.