State-owned Oil and Natural Gas Corporation (ONGC) has won government approval for acquisition of Gujarat State Petroleum Corporation’s (GSPC) entire 80 per cent holding in a KG basin gas block for Rs 7,738 crore, the company said.
had in December last year agreed to buy the entire 80 per cent interest of GSPC
along with operatorship rights, in Deen Dayal West (DDW) gas field in Block KG-OSN-2001/3 in the Bay of Bengal for $995 million (Rs 6,443 crore).
The company will also pay part consideration of $200 million (Rs 1,295 crore) to GSPC
towards acquisition rights for discoveries other than DDW field in the block.
“A farm-in agreement was signed with GSPC
on March 10, 2017 with an economic data of March 31, 2017,” ONGC
said in notes to its first quarter earning disclosure.
will make payments to GSPC
“on fulfilment of certain conditions precedent,” it said without elaborating.
A company official said the deal is likely to be closed within one month.