MoPNG Approves ONGC’s Rs 10,501 Cr Capital Boost

Tags: Economy/Finance

The Ministry of Petroleum & Natural Gas (MoPNG) has approved ONGC's investment of up to Rs 10,501 crore in Oil & Natural Gas Corporation Limited (ONGC), Petro additions Limited (OPaL), Vadodara, Gujarat.

An Overview of the News

• OPaL is a joint venture between ONGC, Gas Authority of India (GAIL), and Gujarat State Petroleum Corporation Limited (GSPC).

• The approval includes:

  • Conversion of Compulsorily Convertible Debentures (CCDs) worth Rs 7,778 crore.

  • A balance payment of Rs 86 crore related to share warrants.

  • Total financial approval amounts to Rs 18,365 crore.

Impact of Investment

• The investment will increase ONGC's equity stake in OPaL from 49.36% to 95.69%, making OPaL a subsidiary of ONGC.

• The government has allocated 50% of the annual gas production from ONGC's new wells or up to 3.2 Million Metric Standard Cubic Meters per Day (MMSCMD) of domestic natural gas to OPaL.