ONGC extends gain on pact with CNPC

Oil and Natural Gas Corporation (ONGC) is trading higher by 2% at Rs 280, extending its 4% rise in the past three days after the state-owned oil exploration firm signed an agreement with China's largest oil firm, China National Petroleum Corp (CNPC) to jointly explore for oil and gas worldwide.

“Under an initial pact signed Monday between ONGC and CNPC, the two will jointly explore assets in other countries, cementing existing partnerships in Myanmar, Syria and Sudan,” the report suggests.

The deal could also see CNPC participating in efforts to develop and exploit ONGC’s domestic assets, added report.

The stock opened at Rs 273 and has bounced back by almost 3% from intra-day low of Rs 272 on the National Stock Exchange. A combined 2.5 million shares have changed hands on the counter so far on both the exchanges.