ONGC to buy GSPC’s KG basin block

The acquisition of participating interest and operatorship rights in the block fits well with the strategy of ONGC to boost gas production

GN Bureau | December 26, 2016


#gas production   #ONGC   #PSU   #KG basin  

 The Oil and Natural Gas Corp. Ltd (ONGC), a Maharatna PSU, has decided to buy an 80 percent stake and development rights in Gujarat State Petroleum Corp. Ltd’s (GSPC’s) Deen Dayal West field in the Krishna Godavari offshore block for $995.26 million, a statement issued by the corporation said.

ONGC said that it would also pay part consideration of $200 million to GSPC towards future consideration for six discoveries other than Deen Dayal West Field, which will be adjusted upon valuation of the these discoveries subsequent to approval their field development plans by DGH/Management Committee of the block.
 
The trial gas production from Deen Dayal West Field has already begun. Upon successful completion of the transaction, ONGC would bring the field on commercial production along with the existing partners in the Block.
 
“The acquisition of participating interest and operatorship rights in the block fits well with the strategy of ONGC to boost natural gas production from domestic fields at a rapid pace, more so with a goal to reduce import dependency of hydrocarbons by 10 per cent by 2021-22,” the statement said.
 
ONGC is the largest producer of crude oil and natural gas in India, contributing around 70 percent of Indian domestic production. ONGC's market capitalisation as on December 23, 2016, was Rs 2,477 billion ($36.47 billion).
 

Comments

 

Other News

“World headed towards stagflation; India must take care of the poor”

As the post-pandemic fallout and geopolitical uncertainty slows down global economies and sanctions against some nations, energy crisis and inflation are adding to the troubles, India is projected to be decoupled from world economy and fare better. To check if this belief really holds water, in the latest

The changing nature of CSR in India

With the advent of globalization came a new set of challenges for corporations, notably the duty of ensuring the well-being of all stakeholders while also protecting the planet`s natural environment. Although we are dedicated to a faster and more inclusive rate of growth, it is equally imperative that we f

BMC commissioner Chahal conferred with hon. doctorate

BMC commissioner and administrator Iqbal Singh Chahal has been conferred with a Honorary Doctor of Science Degree (honoris causa) by Guru Nanak Dev University in Amritsar, Punjab. Chahal was conferred the degree during the 48th convocation of the University in Amritsar at the hands of Punjab

Sebi to have two-track approach on ESG

Securities and Exchange Board of India (Sebi) aims to use a two-track approach on environmental social and corporate governance (ESG). Addressing a conference on ‘ESG for Atmanirbhar Bharat` in Mumbai, Sebi chairperson Madhabi Puri Buch said that that there should not be a single carbo

Accuracy more important than speed in news: Anurag Thakur

Presenting authentic information is the prime responsibility of media and that facts should be properly checked before they are put in the public domain, union minister of information and broadcasting Anurag Thakur has said. “While speed with which the information is transmitted is imp

FM concludes pre-budget consultations

Union minister for finance and corporate affairs Nirmala Sitharaman has concluded the pre-budget consultation meetings for Budget 2023-24 that were held from November 21 to 28 in the virtual mode. More than 110 invitees representing seven stakeholder groups participated in eight meetings sch

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter