ONGC buys 80% participating interest in GSPC block

GSPC will continue to hold 10% participating interest in the block

Oil and Natural Gas Corp Ltd, India's top explorer, said on Friday it has bought 80 percent participating interest and operatorship in one of the blocks of Gujarat State Petroleum Corporation (GSPC) in Krishna Godavari Basin offshore.

GSPC will continue to hold 10 percent participating interest in the said block while the remaining 10 percent lies with GSPC's partner Jubilant Offshore Drilling Ltd, ONGC said in an exchange filing.

ONGC said it has taken over the block against a purchase consideration of $995.3 million.

The state-run company said it has made an advance payment of $200 million to GSPC towards future consideration for six discoveries other than Deen Dayal West Field.

ONGC also intends to develop an High-Pressure High Temperature (HPHT) corridor of oil and gas in the Krishna Godavari Basin, it said.