ONGC to buy GSPC’s KG basin block -Governance Now

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

India’s freedom struggle was shaped by wider Asian political thought

As we mark 80th anniversary of independence, ‘Asianism and the Fall of Empire’ (HarperCollins India) by historian Mithi Mukherjee offers a new perspective on Ind

What is colonialism? A relook at modern history

The Chromatic World Order: The Fiction That Rules Our World By Sajid Mohamed Aakar Books

Monsoon session of parliament adjourns sine die

The Monsoon Session, 2026 of Parliament which commenced on July 20 was adjourned sine die on Thursday. The session provided 19 sittings spread over a period of 25 days. During the session 11 Bills were introduced in Lok Sabha and 2 Bills were introduced in Rajya Sabha. 12 B

Consumer Justice at a Crossroads

Over the past four decades, India`s consumer protection landscape has undergone a remarkable transformation. What began with the Consumer Protection Act, 1986 as a simple mechanism to empower ordinary citizens has evolved into a comprehensive framework capable of addressing challenges ranging from mislea

Doctors, experts call for ban on junk food ads, mandate warning labels

More than 30 doctors, medical scientists and public health professionals have urged the government to take decisive action against the aggressive advertising and marketing of junk food, calling for a watershed ban on advertisements for foods high in fat, sugar and salt (HFSS) and ultra-processed foods (UPF

Asiatic Lion population rises from 523 in 2015 to 891 in 2025

On World Lion Day 2026, environment, forest and climate change Minister Bhupender Yadav celebrated India’s remarkable journey in lion conservation and reaffirmed the country’s unwavering commitment to protecting wildlife and biodiversity. In a post on soc