ONGC, GSPC to tie up for KG block exploration

The deal size was expected to be $2-2.5 bn but ONGC was successful in bringing it down to $995 mn

Oil and Natural Gas Corporation (ONGC), the largest hydrocarbon producer in the country, is likely to sign a farm-in agreement with Gujarat State Petroleum Corporation (GSPC) for the acquisition of its Deen Dayal Upadhyaya discovery in the Krishna-Godavari (KG) basin for $1.2 billion (Rs 8,160 crore) by February end. 

According to multiple sources, the two companies would sign the agreement prior to the closure of the deal by March 31. “A farm-in agreement has to be signed by both the parties. At the moment, we have approved process agreements and the deal is likely to be notified by the end