ONGC jumps on block acquisition buzz

DALAL STREET SPIKES

ONGC gained 2.8 per cent to close at Rs 899.25 with 26 per cent growth in volumes of 4.8 lakh shares following reports that the company is close to buying up to 33 per cent stake in two Caspian Sea offshore blocks of Turkmenistan by paying about $34-45 million.

ONGC's overseas investment arm and its 100 per cent subsidiary OVL, (ONGC Videsh Ltd) will soon sign a deal with Denmark's Maersk Oil and Wintershall, the German oil and gas firm.

Apart from this, large reserves accretions from five global discoveries are expected to be declared by the company in the next 12-30 months. The stock has missed the rally of 2006 and has been a major under-performer in the last one year.