अब आप न्यूज्ड हिंदी में पढ़ सकते हैं। यहाँ क्लिक करें
Home » India » KG basin block: ONGC to acquire 80% stake of GSPC with operatorship rights

KG basin block: ONGC to acquire 80% stake of GSPC with operatorship rights

By Newsd
Updated on :

The plan to secure the entire 80 per cent participating interest of Gujarat State Petroleum Corporation Ltd’s (GSPC) block was approved by state-run Oil and Natural Gas Corporation Ltd (ONGC) in the Krishna- Godavari basin at $995.26 million on Friday.

ONGC, the largest producer of crude oil and natural gas in the country contributes around 70 per cent of Indian domestic. A part consideration of $200 million will be paid by ONGC towards future consideration for 6 discoveries excluding the Deen Dayal West Field to GSPC.

The deal would be accepted by signing a farm-in agreement with GSPC. Necessary approval from the government will be taken by GSPC in compliant with provisions of production sharing contract of the block.

“The acquisition of PI and operatorship rights in the Block fits well with the strategy of ONGC to enhance natural gas production from domestic fields on a faster pace, more so with a goal to reduce import dependency of hydrocarbons by the 10 per cent by year 2021-22. The trial gas production from Deen Dayal West Field has already begun. Upon successful completion of the transaction, ONGC shall endeavour to bring the field on commercial production along with the existing partners in the Block,” said a statement.

As per the state-run exploration chief, the Deen Dayal Field will act as a pivot in emerging adjacent discoveries in Yanam and Godavari PML parts of ONGC, simultaneously.

Besides, ONGC will be capable of bringing the gas discoveries of KG-DWN-98/2 NELP block and nearby nomination blocks to production on progression through the utilization of infrastructure of the Deen Dayal West Field.

GSPC has already constructed production facilities such as well head platforms, process cum living quarter platform, onshore gas terminal and export pipeline for transporting treated well fluid from process platform to onshore terminal in the zone.


Latests Posts

Editor's Choice