NEW DELHI: The Oil and Natural Gas Corporation (ONGC) on Friday announced that it will acquire an 80 per cent stake in the debt-ridden oil major Gujarat State Petrochemicals Corporation’s KG basin gas block for nearly $1 billion.
According to the statement released by ONGC, it will also acquire operatorship of the block KG-OSN-2001/3 in Krishna Godavari (KG) Basin offshore.
“ONGC Board today considered the proposal and approved acquisition of the entire 80 per cent Participating Interest (PI) of GSPC along with operatorship rights, at a purchase consideration of $995.26 million for Deen Dayal West Field in the Block,” the company said.
The Gujarat State Petrochemicals Corporation (GSPC) has built considerable production infrastructure at the site, including well head platforms, process cum living quarter platform, onshore gas terminal, export pipeline for transporting treated well fluid from process platform to onshore terminal etc. The deal will also see ONGC pay part consideration of $200 million towards future consideration for six discoveries other than the Deen Dayal West Field. These will be adjusted upon valuation of the discoveries subsequent to approval.
ONGC also said it has an opportunity to bring development of the Cluster-I gas discoveries of the KG-DWN-98/2 NELP Block and adjacent nomination blocks on a fast track.