Oil & Natural Gas Corp Ltd. said it will buy the 80% stake in Deen Dayal West field offshore eastern India held by Gujarat State Petroleum Corp. Ltd. The agreement for $995.26 million includes operatorship.
The field lies on NELP-III KG-OSN-2001/3 block in the Krishna Godavari basin (OGJ Online, Mar. 28, 2016).
ONGC said trial gas production from Deen Dayal West has begun and that Gujarat State has built wellhead platforms, a living quarters platform, a pipeline, and an onshore natural gas terminal.
Based on future valuations, ONGC will also pay partial consideration for six discoveries in addition to Deen Dayal West.
ONGC said a corridor of high-pressure and high-temperature oil and gas is “emerging” in the basin and that Deen Dayal will “act as a pivot” in developing nearby discoveries.
ONGC also sees an opportunity to use Deen Dayal West infrastructure for development of Cluster-I gas discoveries on the KG-DWN-98/2 NELP block.