ONGC secures Approval of Government for Investment in ONGC Petro additions Ltd

State-owned Oil PSU ONGC has secured approval from the Ministry of Petroleum and Natural Gas for infusing the additional capital equity of Rs 10,501 crore in ONGC Petro additions Ltd.

According to the exchange filing made, it is informed that the Company has received a letter dated 09.08.2024 from the Ministry of Petroleum & Natural Gas, Govt. of India (GoI), inter-alia, conveying approval of the GoI for infusion of additional equity capital upto Rs 10,501 crore in ONGC Petro additions Limited (OPaL), conversion of back stopped Compulsorily Convertible Debentures (CCDs) amounting to Rs 7,778 crore and balance payment of Rs 86 crore for share warrants, totalling to Rs 18,365 crore.

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 This will change the status of OPaL into a subsidiary of ONGC with a 95.69% equity stake. The approval also provides a roadmap for OPaL, the company added further.

 The government has also permitted to allocate of 50% of the annual gas production from new wells or well interventions in nomination fields of ONGC or up to 3.2 MMSCMD of domestic natural gas, whichever is lower, for providing feedstock support to OPaL, at a price up to 20% above APM price. APM Price of natural gas per MMBTU is 10% of the Indian Crude basket price per barrel of Oil.

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