BG Group of the UK on Tuesday said it has signed agreements with Oil and Natural Gas Corp (ONGC) to take stake in the state-run firm's eastern offshore oil and gas exploration blocks. BG will take 30 per cent stake in Krishna Godavari basin block KG-DWN-98/4 and another 25 per cent interest in Mahanadi basin deep-sea block MN-DWN-2002/2, the company said in a press release here."On completion of the farm-in agreement, which is subject to government approval, the consortium of KG-DWN-98/4 will comprise ONGC (55 per cent), BG (30 per cent) and Oil India Ltd (15 per cent)," it said.
In MN-DWN-2002/2, ONGC will have 75 per cent after BG takes stake.
BG India Managing Director Kapil Garg said: "Today's agreement provides further opportunities for both ourselves and ONGC."
ONGC had won KG basin Block KG-DWN-98/4 in the first round of auction under New Exploration Licensing Policy (NELP) while MN-DWN-2002/2 was awarded to it in NELP-IV.
If the deal happens, cost of exploration and production would be shared between ONGC and BG in the ratio of their participating interest, while BG would also share the past exploration cost incurred by ONGC in proportion to its shareholding, officials said.
For Block KG-DWN-98/4 that sits next to Reliance Industries' gas-rich KG-DWN-98/3 or KG-D6 block, BG would bear ONGC's share of forward exploration expenditure to the extent of 15 million dollars.
No comments:
Post a Comment