Oil and Natural Gas Corporation (ONGC) has inked definitive agreements to buy out debt-ridden GSPC’s entire 80% stake in KG-basin natural gas block for $1.2 billion. The company will pay $995.26 million for three discoveries in the KG-OSN-2001/3 block that are under trial production since August 2014. Another $200 million will be paid for six other discoveries for which GSPC has been finalizing an investment plan to bring them to production.
The company will close the deal and pay the Gujarat State Petroleum Corporation (GSPC) the money after regulatory approvals like government nod for transfer of PI (participating interest) and change of operatorship are secured.
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.