GSPC receives full ONGC Deen Dayal payment

Vol 20, PW 23 (10 Aug 17) People & Policy

GSPC has received full and final payment of $1.19bn from ONGC for its 80% stake in the Deen Dayal block.

PETROWATCH learns GSPC received $995m on August 3 for Deen Dayal West along with an advance payment of $200m for six other discoveries. GSPC sources tell us the money was deposited in a SBI escrow account from where it will work its way to a consortium of banks to settle part of the $3bn debt GSPC has built up over the years.

"The speed at which the deal went ahead is amazing," says a senior Gandhinagar source. "It had the full backing of the PMO." Narendra Modi wanted the deal completed before Gujarat state elections later this year.

Sources also speculate outgoing ONGC chairman DK Sarraf wanted to ensure successful closure before he bows out on September 30. Under the deal ONGC has paid GSPC $995m for discoveries KG-08, KG-17 and KG-15 in Deen Dayal West plus Rs1450cr ($218m) for the wellhead platform and process/living quarters; Rs1626cr ($244m) for the onshore gas terminal at Mallavaram and Rs826cr ($124m) for the 20-inch diameter, 24.5-km subsea pipeline connecting the process/living quarters and onshore gas terminal.

ONGC's payment of $200m was for discoveries KG-21 and KG-31 at Deen Dayal West Downthrown; KG-16 at Deen Dayal East, KG-22 at Deen Dayal North; and KG-19 and KG-20SS at Deen Dayal North Extension.

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