ONGC to acquire GSPC’s KG basin assets for $1.2 billion

State-run Oil and Natural Gas Corporation Limited (ONGC) has approved the acquisition of the entire 80 per cent of Gujarat State Petroleum Corporation Limited’s (GSPC) participating interest in the Deen Dayal West Field in the KG-OSN-2001/3 block along with operatorship rights, at a purchase consideration of $995.26 million (Rs 67.49 billion)  . ONGC will also pay $200 million (Rs 13.56 billion) to GSPC towards future consideration for six other discoveries, which will be adjusted upon valuation of these discoveries subsequent to the approval of their field development plans the by Directorate General of Hydrocarbons /management committee of the block. The transaction will be documented by signing a farm-in agreement with GSPC. Requisite approvals from the government will be sought by GSPC in accordance with the provisions of the production sharing contract of the block.