DK Sarraf forced to buy GSPC block

Vol 19, PW 25 (25 Aug 16) News in Brief

DK Sarraf is tight-lipped ahead of a report by Houston-based reservoir consultant Ryder Scott next month (September) on whether ONGC should 'farm-in' to the GSPC-operated KG-OSN-2001/3 block.

Asked to comment during a chance meeting on August 2, Sarraf laughed heartily. "Let's discuss the weather," said the ONGC chairman.

"Or we can talk about family? You've stumped me by asking such a direct question." Another source tells us ONGC and GSPC have concluded financial negotiations. "ONGC has been told to take a minimum 50% of this asset," we hear.

"This way GSPC's debt can be brought down." Sarraf is widely believed to be hesitating over the move - fully aware GSPC has sunk $2.8bn at the block with little to show. A GSPC source is confident the deal will go through.

"ONGC has no choice," he says. "There is no doubt, ONGC will buy a stake in the (Deen Dayal) field." ONGC hired Ryder Scott in July after dropping earlier plans to hire DeGolyer and MacNaughton.

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