Industry & Economy
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Petroleum
ONGC to pay $135 m for Cairn oil blocks
Our Bureau
Mumbai
,
Oct. 1
OIL and Natural Gas Corporation Ltd (ONGC) and Cairns Energy Plc have signed agreements to exchange oil and gas exploration blocks in the ownership of one another. While ONGC will buy two blocks, it will sell one to Cairn. The transaction will cost ONGC $135 million.
According to a release issued here, ONGC will acquire a 90 per cent interest in a deep-water exploration block located in the Krishna-Godavari basin (K-G) from Cairn. ONGC will also buy a 15 per cent interest in a block in the Gulf of Cambay off the western shore and 10 per cent in the Laksmi and Gauri development areas. While Cairn holds 75 per cent exploration interest in the former, it has 50 per cent in the latter.
ONGC already holds 10 per cent in the K-G block along with 15 per cent by Tata Petrodyne. It also holds 40 per cent in Lakshmi and Gauri blocks.
Apart from acquiring the interest from Cairn, ONGC will also sell 30 per cent of its ownership in a virtually unexplored block in the Ganga basin and an onshore block in the Cambay basin. IOC holds 30 per cent stake in the Ganga basin block, while the Cambay onshore block is fully-owned by ONGC.
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