India News
Search Web Directory
 India News  
News Home
ONGC buys 80% stake in GSPC's KG basin gas block
Posted on 5th August 2017
The country’s largest oil and gas producer Oil and Natural Gas Corporation (ONGC) has said it has completed the Rs 7,738-crore acquisition of an 80 per cent stake in Gujarat State Petroleum Corp’s (GSPC’s) KG basin gas block.

ONGC had, in December last year, agreed to buy the entire 80 per cent interest of GSPC along with operatorship rights, in Deen Dayal West (DDW) gas field in Block KG-OSN-2001/3 in the Bay of Bengal for $995.26 million (Rs 6,443 crore).

It had also agreed to pay part consideration of $200 million (Rs 1,295 crore) to GSPC towards acquisition rights for discoveries other than the DDW field in the block.

ONGC said it got government nod for the purchase last month and has now made payments to complete the acquisition.

GSPC, a Gujarat government firm, will remain in the Block holding 10 per cent stake which it acquired from the outgoing partner Geo Global Resources, it said.

The remaining 10 per cent interest is with Jubilant Offshore Drilling Ltd.

"ONGC and GSPC had entered into a farm-in-farm-out agreement (FIFO) on March 10, 2017 to firm up the methodology and modus operandi to give effect to this transaction.

"Following approval of Government of India for transfer of participating interest and operatorship as per provisions of the Production Sharing Contract, ONGC today has taken over the block," the company said in a statement.

ONGC said the acquisition fits well with its strategy to enhance natural gas production from domestic fields on a faster pace.

The trial gas production from Deen Dayal West field began in 2014 and commercial production from April 1, 2016.

The company plans to use GSPC field facilities to bring to production the discoveries in its neighbouring KG-DWN-98/2 block.

GSPC, with a debt of Rs 19,716.27 crore as on March 31, 2015, has so far made 9 gas discoveries in the Bay of Bengal block. Of these, three -- KG-08, KG-17, KG-15 commonly known as Deendayal West (DDW) fields - have been approved for development.

But against an approved field development plan (FDP) cost of $2.75 billion, GSPC has seen a huge cost overrun, incurring $2.83 billion as on March 31, 2015. Additionally, it had run up an exploration cost of $584.63 million, taking total expenditure as on March 31, 2015, to $3.41 billion.

As per the requirement of the field development plan (FDP), 12 more development wells are yet to be completed, which will further bump up the project cost.

The trial production from the DDW field commenced in August 2014, but the average production achieved is only 19.45 million standard cubic feet per day against a targeted commercial production of 200 mmscfd.

The DGH-approved FDP had envisaged commercial production from December 2011.

Officials said FDP for the six remaining discoveries -- KG-16, KG-22, KG-31, KG-21, KG-19 and KG-20SS -- is under review of GSPC.

As per the approved FDP of DDW fields, the estimated oil and gas in place (OGIP) was 1.95 trillion cubic feet (tcf).

Related Companies: Oil and Natural Gas Corporation Limited (ONGC)   

Other Latest News
 
MUMBAI (Reuters) - State-run banks will need more capital to resolve bad loan problems weighing on their balance sheets, Reserve Bank of India Governor Urjit Patel said on Saturday, adding his voice to calls for increased capital injections into lenders.

More than $150 billion of bad debt is crimping credit growth in Asia's third-largest economy and the government and central bank have been trying to ease the burden on state-run lenders.


 
New Delhi: Leading bourses BSE and NSE will suspend trading in the shares of United Breweries (Holdings) Ltd from 8 September while the entire promoter shareholding has been frozen with immediate effect.

Fugitive liquor baron Vijay Mallya is a promoter of UBHL.


 
New Delhi: Securities and Exchange Board of India (Sebi) will defreeze the bank accounts of National Spot Exchange Ltd (NSEL)’s former CEO Anjani Sinha and Multi Commodity Exchange (MCX)’s ex-chief Joseph Massey which were frozen by the regulator in an alleged insider trading case.

The markets regulator informed the Securities Appellate Tribunal (SAT) about the decision to defreeze the bank accounts immediately when the tribunal was hearing the pleas filed by the two individuals against the Sebi order.


 
Indore: State Bank of India (SBI) has realised Rs235.06 crore as penalty from 388.74 lakh accounts for not maintaining monthly average balance in the first quarter of the current fiscal, an RTI query has revealed.

“An amount of Rs235.06 crore has been realised from our 388.74 lakh accounts which did not maintain monthly average balance in the first quarter ended 30 June,” SBI said in its reply to an application filed by Neemuch-based RTI activist Chandrashekhar Gaud.


 
DLF’s Q1FY18 residential new sales were severely impacted as beginning May 2017 it had halted sales across projects citing RERA compliance. While sales should pick up in coming quarters, we expect slow pace until demand improves in Gurgaon market and/or DLF launches new inventory. We envisage meaningful rental uptick only post FY19 when ongoing rental assets become operational. We, hence, perceive limited earnings scale-up visibility. Deleveraging hinges on GIC deal valuation. Maintain Hold.

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on IndiaCatalog.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for ONGC buys 80% stake in GSPC's KG basin gas block
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for ONGC buys 80% stake in GSPC's KG basin gas block

Most Read News

Larsen & Toubro sells unit to IMC International for Rs174 crore

SBI collects Rs235 crore in minimum balance fine in 1st quarter

DLF stock rated HOLD by Edelweiss as operational issues cast shadow on Q1

Air India to sell 41 flats in Mumbai

Sebi to defreeze bank accounts of NSEL, MCX ex-chiefs

More India News

India Resource Center
» Free India Classifieds
Introducing IndiaCatalog Free Classifieds. Post your free classified ads. Inviting Real Estate Agents, Travel Agents, Job Placement Agents and others to post their advertisements for free.
» Global Web Directory
Web directory listing of Global companies. Send enquiries to international companies.
» India Yellow Pages
Yellow Pages for Mumbai, Delhi, Bangalore, Chennai, Kolkota, Hyderabad, Pune and more Indian cites.
» Logistics Directory
Find supply chain management consultants, freight forwarders, trucking companies in India.
» Photo Gallery
This page provides you with links to images of India displaying Celebrities Photos,Automobiles Photos,latest Movies Photos,Sports Photos,Photos of Bollywood Stars and many more.
» Agriculture Directory
Find Fresh Vegitables, Fruits, Basmati Rice, Meat, Poultry and Seafood producers in India.
» Real Estate in India
Real Estate directory of India. Find agents, builders and suppliers.
» Gems & Jewellery
Find jewellery, gems and diamond merchants in India.
IndiaCatalog.com
  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Safety Tips For Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory, India Free Classifieds
    © 1999 - 2017 IndiaCatalog.com
    All Rights Reserved
Privacy Statement    
    © 1999 - 2017 IndiaCatalog.com
    All Rights Reserved
Privacy Statement