Oil and Natural Gas Corporation (ONGC) secured government approval for a substantial investment of up to ₹10,501 crore in ONGC Petro Additions Ltd (OPaL). The investment package includes an infusion of up to ₹10,501 crore in additional equity, the conversion of compulsorily convertible debentures (CCDs) valued at ₹7,778 crore, and a remaining payment of ₹86 crore for share warrants.
As a result of the strategic move, OPaL will become a subsidiary of ONGC, with the energy company acquiring a 95.69% equity stake.
As reported by cnbctv18.com, additionally, the government has outlined a future plan for OPaL, which includes feedstock support by allocating up to 50% of ONGC’s annual gas output from new wells or well interventions, with pricing set up to 20% above the APM price.
