NEW DELHI, India – ONGC is considering acquiring Gujarat State Petroleum Corp.’s (GSPC) 80% operated interest in NELP-III block KG-OSN-2001/3 in the Krishna Godavari (KG) basin offshore eastern India for $995.26 million.
The block contains the Deen Dayal West field, which GSPC has developed via wellhead platforms, a process/living quarter platform, an onshore gas terminal, and an export pipeline for transporting treated well fluids from the process platform to the onshore terminal.
ONGC would also pay part consideration of $200 million to GSPC toward future consideration for six other discoveries on the block, to be adjusted upon valuation prior to approval of the field development plans by the DGH/Block Management Committee.
GNPC would seek approval from India’s government in accordance with provisions of the production-sharing contract.
ONGC says the acquisition would be in line with the goal of reduce India’s dependence on imported hydrocarbons by 10% by 2021-22.
Trial gas production from Deen Dayal West field has already started. On completion of the transaction, ONGC aims to begin commercial production.
Deen Dayal West will likely act as a hub for development of the nearby HT discoveries in ONGC’s Yanam and Godavari PML areas. The company will also look to fasttrack development of its Cluster-I gas discoveries on KG-DWN-98/2 NELP block and adjacent nomination blocks via the Deen Dayal West facilities.