ONGC not to buy out private partners of GSPC even if deal is inked


ONGC not to buy out private partners of GSPC even if deal is inked

Even if ONGC is able to close out its deal to buy 80% of the Gujarat government’s GSPC stake in the DDW fields in the Krishna-Godavari Basin in FY18, it does not plan to buy out its private sector partners. An ONGC executive, requesting anonymity, said Jubilant Enpro and Geo Global Resources  having a 10% share each will continue to remain participatory interest (PI) partners and profit-sharing contract will remain the same. “They were PI partners with GSPC from the outset and were investing some money of their share for development of the field through cash calls. They remain where they were and will have to pay cash calls and will get 10% of the revenue each. We will not take that (20%) share,” said the executive.

ONGC’s board in February had approved signing of definitive agreements to buy debt-laden GSPC’s entire 80% stake in the KG Basin natural gas block for $1.2 billion. It will pay $995.26 million for three discoveries in the KG-OSN-2001/3 block that are under trial production since August 2014. Read More…

 

Credit By : Financialexpress.com

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