ONGC in talks to buy stake in GSPC’s KG basin block – Feedback

State-owned Oil and Natural Gas Corp (ONGC) today said it is in talks to buy a stake in GSPC’s KG basin block and has hired US-based consultant Ryder Scott to assess natural gas reserves.

“I have never spoken on GSPC earlier. But I think today I can speak to on GSPC. We have been talking to GSPC for acquiring certain percentage of their (Deendayal) field and the talks are on,” ONGC Chairman and Managing Director D K Sarraf told reporters here. Since the BJP-led government came to power at the Centre, the Gujarat government firm GSPC has been seeking to sell a majority stake in its KG-OSN-2001/3 (Deendayal) block in Bay of Bengal to ONGC to avoid defaulting on loans. ONGC initially was not keen to buy stake in the block as it felt the block had reserves far less than what GSPC was claiming and the asking price for the stake was not commensurate with the returns.

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