GSPC wants more money from ONGC deal

Vol 20, PW 9 (26 Jan 17) News in Brief

In public ONGC is acting as if its acquisition of 80% at GSPC-operated KG-OSN-2001/3 is a done deal.

But in private sources say it is "far from" closed. "GSPC isn't happy with what we agreed to pay," explains an ONGC source.

On December 23, 2016, ONGC announced it would pay $995.26m to GSPC plus $200m for six discoveries to be developed in the future. "This $200m figure is in dispute," he adds.

"GSPC's original demand was $2bn to $2.5bn. We agreed to pay only $995.26m.

GSPC says $995.26m is only for the Deen Dayal West field and wants an open ended amount (not capped at $200m) for six other discoveries. Negotiations will continue for some more time." Another ONGC source adds Sarraf was under intense pressure from Narendra's Modi's office (PMO) to announce the deal fast.

"Sarraf didn't have a choice!" we hear. One uncorroborated report suggests the ONGC chairman was pointedly blackmailed by a ministry official who threatened to open an investigation into a controversial rig tender more than two years ago unless he signed on the dotted line.