ONGC to acquire 80% stake of GSPC’s Krishna Godavari basin

Oil and Natural Gas Corp (ONGC) will acquire Gujarat State Petroleum Corp’s (GSPC) entire 80% stake in a Krishna Godavari Basin gas block in eastern offshore after receiving a green signal from the government for the deal.

The ONGC will be acquiring the stake of GSPC for Rs7,738 crore according to reports.

“Government of India has approved the acquisition of entire 80 percent participating interest of GSPC along with operatorship rights,” said ONGC in notes appended to its results for the first quarter of the current fiscal declared Thursday.

ONGC had agreed to acquire GSPC’s 80 percent, along with operatorship rights, in the Deen Dayal West gas field in Block KG-OSN-2001/3 in the Bay of Bengal for Rs 6,443 crore.

"An agreement was signed with GSPC on March 10, 2017," ONGC said.

ONGC has agreed to pay part of Rs 1,295 crore to GSPC towards acquisition rights for discoveries in the block other than the DDW field.

According to a company official, GSPC, with a debt of nearly Rs 20,000 crore, has so far made nine gas discoveries in the KG basin block.