BG Group to Exit ONGC JV

Indian subsidiary of UK-based BG Group is expected to exit from Krishna-Godavari (KG) offshore block that it jointly holds with state-run ONGC.

The decision to exit KG offshore block follows the recent decision to divest its stake in Gujarat Gas Company (GGCL). The present move is seen as BG Group’s strategy to scale down India operations.

After this proposed move, ONGC will hold 100 per cent stake in the block and complete the minimum work programme. ONGC will take a decision on this issue at its board meeting scheduled on January 4.

Block KG-OSN-2004/1 was awarded under sixth round of oil and gas blocks auction under NELP regime. A consortium of ONGC bagged the contract with 55 per cent participating interest as operator and British Gas having 45 per cent participating interest.