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ONGC wins govt nod for Rs 7,738-cr GSPC stake buy

ONGC had in December last year agreed to buy the entire 80 per cent interest of GSPC

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A technician is pictured inside a desalter plant of Oil and Natural Gas Corp (ONGC) on the outskirts of Ahmedabad (Photo: Reuters)

Press Trust of India

Last Updated : Jul 29 2017 | 1:13 AM IST

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.

ONGC 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.

ONGC 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.