ONGC to Buy BG Group's Stake in 3 Exploration Blocks

Oil and Natural Gas Corp will buyout BG Group's stake in three of its eastern offshore oil and gas exploration blocks, Economic Times said Wednesday.

ONGC will buy BG Group's 45 per cent participating interest in Krishna-Godavari Basin block KG-OSN-2004/1, 25 per cent interest in exploration block MN-DWN-2002/02 in the Mahanadi Basin and 30 per cent stake in deep water block KG-DWN-98/4.

BG and ONGC had won the 1,131 sq km KG-OSN-2004/1 block under the sixth round of the New Exploration Licencing Policy (NELP) in 2006. ONGC, which held a 55 per cent in the block, would have a 100 per cent stake after the transaction in the block, where one well was spud last year.

In 2008, BG Group had farmed into ONGC's 5,895 sq km MN-DWN-2002/02 block and KG Basin deepsea block KG-DWN-98/4.

KG-DWN-98/4 block has been relinquished as the two firms could not find any commercially exploitable hydrocarbon reserves.

BG was exiting the blocks as part of its global portfolio alignment strategy.