Cairn offers to sell ONGC 85% in two blocks

Cairn Energy PLC, Scotland, offered to sell 85% of its stake in two oil and gas blocks in the Krishna-Godavari (KG) basin to India's state-owned Oil & Natural Gas Corp. (ONGC) for $100 million and 15% equity in two ONGC blocks.

July 10, 2003

Shirish Nadkarni
OGJ Correspondent
MUMBAI, July 10 -- Cairn Energy PLC, Scotland, offered to sell 85% of its stake in two oil and gas blocks in the Krishna-Godavari (KG) basin to India's state-owned Oil & Natural Gas Corp. (ONGC) for $100 million and 15% equity in two ONGC blocks.

If the deal is accepted, Cairn Energy would sell 85% of its holding in blocks KG-DWN-98/2 and KG-OS/6 in exchange for 15% equity in two blocks that ONGC won under the third round of the New Exploration Licensing Policy.

ONGC has a July 15 deadline to accept or reject the offer.

Previously, ONGC bid $200 million for three of Cairn's blocks—two in the KG basin and the CB-OS/2 block in the Cambay basin in Gujarat. Cairn rejected that bid and has since withdrawn the CB-OS/2 block from the sales block.