Oil and Natural Gas Corporation (ONGC) has joined hands with Japan’s largest oil and gas company Inpex Corporation for development of its Krishna Godavari basin deep-sea block. Inpex has acquired 26 per cent stake in ONGC’s block.

An official statement issued here by ONGC said ONGC and Inpex have entered into a strategic partnership for exploration of hydrocarbons in one of the acreages in KG Basin. Inpex acquired 26 per cent interest in ONGC’s KG-DWN-2004/6 block. No financial details of the transaction were, however, provided. “Both companies have today [on Monday] inked a farm-out agreement at ONGC’s corporate headquarters in New Delhi,” the statement said.

ONGC will continue as the operator of the block with a 34 per cent stake. Other partners in the block include GAIL (India), Gujarat State Petroleum Corporation Ltd (GPSC), Hindustan Petroleum Corporation Ltd (HPCL) and Oil India Ltd (OIL) with 10 per cent stake each. The boards of ONGC and Inpex have already approved the proposal.

“ONGC has completed most of the Phase-I exploration programme in the block except drilling of one well which is to be taken up,’’ the company said. The tie-up comes close on the heels of ONGC’s recent alliances this year with global majors such as U.S.-based ConocoPhillips, China’s CNPC and Colombia’s Ecopetrol SA. ``The alliance with Inpex is yet another successful effort in its attempt to collaborate and expand its strategic interests,” ONGC added.

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