Cairn to sell oil blocks to ONGC for $100 million

Cairn Energy of UK has offered to sell its stake in two oil and gas blocks in Krishna Godavari Basin to Oil and Natural Gas Corporation for $100 million and 15 per cent equity in state-run firm’s two blocks. Cairn has offered to sell its 85 per cent stake in blocks kg-dwn-98/2 and kg-os/6 for $100 million and a 15 per cent interest in two blocks which ONGC won under the new exploration licensing policy (Nelp) rounds, ONGC sources said.

Rejecting ONGC’s about $200 million non-binding bid for its two kg basin blocks and cb-os/2 block in Cambay Basin, the Scottish explorer gave ONGC time till July 15 to respond to its offer.

Cairn, however, has decided to withdraw cb-os/2 block, where 5 oil and gas discoveries have been made to date, from its offer of sale.