ONGC board approves pact to acquire GSPC stake for $1.2 billion

The board of state-owned Oil and Natural Gas Corporation (ONGC) has approved the signing of definitive agreements for buying debt-laden Gujarat State Petroleum Corporation’s (GSPC) entire 80 per cent stake in the Krishna Godavari (KG) basin natural gas block for $1.2 billion. Of this, ONGC will pay $995.26 million for three discoveries in the KG-OSN-2001/3 block that are under trial production since August 2014. Another $200 million will be paid for six other discoveries for which GSPC has been finalising an investment plan to bring them to production.