LiveONGC‘s board has provided its approval for signing of a definitive agreement for buying debt-laden GSPC’s entire 80 percent stake in KG-basin natural gas block for USD 1.2 billion.
USD 995.26 million will be paid by ONGC for three discoveries in the KG-OSN-2001/3 block which are under trial production since August 2014.
For six other discoveries for which GSPC has been finalising an investment plan to bring them to production, another USD 200 million will be paid.
The company has said in a statement that “ONGC Board has approved execution of farm-in/farm-out agreement with GSPC in respect of acquisition of 80 percent Participative Interest (PI) and Operatorship in the NELP-III block KG-OSN-2001/3.”
