Oil and Natural Gas Corporation (ONGC) has bought 80 percent participating interest (PI) and operatorship in one of the blocks of Gujarat State Petroleum Corporation (GSPC) in Krishna Godavari Basin offshore.
Following approval of Government of India for transfer of PI and Operatorship as per provisions of the Production Sharing Contract, the company has taken over the Block against a purchase consideration of $995.26 million for Deen Dayal West Field in the Block. ONGC has also made an advance payment of $200 million to GSPC in respect of future consideration for six discoveries other than Deen Dayal West Field, which will be adjusted upon valuation of the these discoveries subsequent to approval of their Field Development Plan by Management Committee of the Block.
Oil and Natural Gas Corporation (ONGC) is India’s largest government-run corporation and produces about 70% of India’s crude oil and natural gas. The corporation is the biggest public sector commercial organization in India.
