ONGC hires US based consultant to assess reserves in GSPC”s Deendayal gas block
Oil & Natural Gas Corporation (ONGC) has hired the US-based consultant Ryder Scott to assess natural gas reserves in Gujarat State Petroleum Corporation’s (GSPC) Deendayal block before deciding to buy a stake in it. The consultant will submit its report by November.
GSPC has been seeking to sell a majority stake in its Deendayal block in Bay of Bengal to ONGC to avoid defaulting on loans. ONGC initially was not keen to buy stake in the block as it felt the block had reserves far less than what GSPC was claiming and the asking price for the stake was not commensurate with the returns.
ONGC is India’s largest government-run corporation and produces about 70% of India’s crude oil and natural gas. The corporation is the biggest public sector commercial organization in India with current market capitalization of about $31 billion.
