ONGC Signs Pact to Acquire Entire Stake of GSPC in KG Block for $1.2 billion

Posted on:20 Mar 2017 09:49:53
ONGC Signs Pact to Acquire Entire Stake of GSPC in KG Block for $1.2 billion
20 March 2017 Current Affairs: State-owned Oil and Natural Gas Corporation (ONGC) has signed definitive agreements to buy Gujarat State Petroleum Corporation’s (GSPC) entire 80% stake in KG-basin natural gas block for $1.2 billion. 

The company will close the deal and pay debt-ridden GSPC the money after getting the regulatory approvals like government nod for transfer of participating interest (PI) and change of operatorship.

Under the farm-in and farm-out agreement, ONGC will pay $995.26 million for three discoveries in the KG-OSN-2001/3 block that are under trial production since August 2014.

Besides, another $200 million will be paid for six other discoveries for which GSPC has been finalising an investment plan to bring them to production. ONGC will also have to pay for the entire development cost of the six discoveries

Jubilant Offshore Drilling Pvt Ltd and Geo Global Resources (India) Inc each holds 10% stake in the block.
State-owned Oil and Natural Gas Corporation (ONGC) has signed definitive agreements to buy Gujarat State Petroleum Corporation’s (GSPC) entire 80% stake in KG-basin natural gas block for $1.2 billion. 

The company will close the deal and pay debt-ridden GSPC the money after getting the regulatory approvals like government nod for transfer of participating interest (PI) and change of operatorship.

Under the farm-in and farm-out agreement, ONGC will pay $995.26 million for three discoveries in the KG-OSN-2001/3 block that are under trial production since August 2014.

Besides, another $200 million will be paid for six other discoveries for which GSPC has been finalising an investment plan to bring them to production. ONGC will also have to pay for the entire development cost of the six discoveries

Jubilant Offshore Drilling Pvt Ltd and Geo Global Resources (India) Inc each holds 10% stake in the block.

Monthly Current Affairs

Current Affairs Section

Daily Current Affairs Quiz

Subscribe to Current Affairs

Enter your email to get daily current affairs

Currentt Affairs 2018 November

20 NOVEMBER
NEWS
19 NOVEMBER
NEWS
18 NOVEMBER
NEWS
17 NOVEMBER
NEWS

Currentt Affairs 2018 October

31 OCTOBER
NEWS
30 OCTOBER
NEWS
29 OCTOBER
NEWS
28 OCTOBER
NEWS

Currentt Affairs 2018 September

30 SEPTEMBER
NEWS
29 SEPTEMBER
NEWS
28 SEPTEMBER
NEWS
27 SEPTEMBER
NEWS