State-run Oil and Natural Gas Corporation and private sector Hindustan Oil Exploration Company will pick up British oil and gas firm BG Group's stake in a Gujarat offshore exploration block.
"ONGC and HOEC will pick BG's 62.64 per cent stake in CB-OS/1 in proportion to their existing shareholding," industry sources said.
HOEC holds 17.36 per cent stake in the block, which BG wants to exit as small quantities of hydrocarbons were found in three wells drilled so far. ONGC holds 10 per cent stake.
After BG's exit, HOEC will hold 57.11 per cent in the block while ONGC will have 32.89 per cent stake. ONGC will be the operator of the block.
Tata Petrodyne Ltd - which was not keen to pick up a portion of the BG stake - continues to retain its original 10 per cent participating interest.
While BG India officials were unavailable for comments, the financial consideration for the transfer of the stake was not immediately known.
Sources said HOEC had staked claim to the operatorship of the block on the basis of its larger participating interest but ONGC was ultimately chosen as the operator.
The consortium under ONGC plans to re-start exploration in the block beginning with appraisal of the South Harinagar discovery in the block.
BG Group wanted to exit CB-OS/1 as "the potential in the block was not in conformity with the oil and gas portfolio held by the Group," sources said.
HOEC officials could not be contacted for comments.
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