For a consideration of USD 995.26 million
Oil & Natural Gas Corpn has bought 80% Participating Interest (PI) and operatorship in NELP-III Block KG-OSN-2001/3 (Block) of Gujarat State Petroleum Corporation (GSPC) in Krishna Godavari Basin offshore. GSPC remains in the Block holding 10% PI which they acquired from the outgoing partner M/s Geo Global Resources and other partner in the block is Jubilant Offshore Drilling with 10% PI.ONGC and GSPC had entered into a Farm-in- Farm-out Agreement (FIFO) on 10 March, 2017 to firm up the methodology and modus operandi to give effect to this transaction.
Following approval of Government of India for transfer of PI and Operatorship as per provisions of the Production Sharing Contract, ONGC on 04 August 2017 has taken over the Block against a purchase consideration of US$ 995.26 million for Deen Dayal West Field in the Block. ONGC has also made an advance payment of US$ 200 million to GSPC in respect of future consideration for six discoveries other than Deen Dayal West Field, which will be adjusted upon valuation of the these discoveries subsequent to approval of their Field Development Plan by Management Committee of the Block.
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