Mumbai: State-run Oil and Natural Gas Corp (ONGC) has raised its stake in Hindustan Oil Exploration Company’s Cambay basin discovery block by 30%.
ONGC, being the licensor of the block, had the right to raise its stake by 30% in any oil and gas field in the exploration block CB-OS-1.
HOEC in a statement to the Bombay Stock Exchange said it had “received a communication from ONGC wherein it has exercised its option to acquire additional 30 per cent participating interest in the Gulf ‘A´ Development Area in Block CB-OS-1.”
As per information in the HOEC’s website, ONGC had 32.89% and HOEC had 57.11% participating interest in the project prior to the stake acquisition.
The block CB-OS-1 was awarded to the consortium headed by HOEC before the advent of New Exploration Licensing Policy (NELP). As per the pre-NELP terms, ONGC was given a right to farm-into any oil and gas discovery made by operator. This right was given to ONGC in lieu of it bearing the statutory levies for the operator.
Shares of HOEC were at Rs113, up 0.67% on the BSE in the afternoon trade.