Indian Oil Corporation (IOC) may take up to 50% stake in the gas bearing block in the Krishna-Godavari block KG-OSN-2001/3 controlled by Gujarat State Petroleum Corporation (GSPC).The agreement was signed by IOC director (business development) Naresh K Nayyar and GSPC managing director D J Pandian in Ahmedabad today.GSPC, in return, will get a stake in IOC's block in South Pars field of Iran or one of the three gas bearing blocks the company has in India. GSPC has, till date, drilled two dry wells in the KG basin block. It is moving the drilling rig to the next location to drill the third of the 14 well drilling programme this week."The MoU is an in-principle agreement for IOC taking a stake in GSPC's KG Basin block and the Gujarat government firm getting a participating interest in one of the IOC's blocks. Financial details of the transaction need to be worked out," an official said. He added that GSPC wants to buy up to 5 million tonne of liquefied natural gas (LNG) to be produced by IOC's Iran venture to meet the demand for natural gas in Gujarat.
