Indian energy firm Oil and Natural Gas Corp. said it will invest US$1.2 billion to acquire an 80 percent stake in an offshore gas field on India’s east coast.
The deal will see ONGC take control of a stake from Gujarat State Petroleum Corp., or GSPC, in the Deen Dayal West Field in the Krishna Godavari basin. The ONGC board approved a purchase consideration of US$995.26 million for the block along with a further US$200 million to GSPC towards future consideration for six discoveries other than Deen Dayal West Field.
“GSPC has already built significant production facilities like well head platforms, process cum living quarter platform, onshore gas terminal, export pipeline for transporting treated well fluid from process platform to onshore terminal etc,” an ONGC spokesperson said.
Trial gas production from Deen Dayal West Field has already begun and is the largest discovery in the KG-OSN-2001/3 block. The field has an estimated 1.1 trillion cubic feet of natural gas reserves. The investment is expected to drive breakbulk demand to the region as development progresses.
Photo: The Krishna Godavari Basin. Credit: Wikimedia