In what marks the entry of Japanese companies in India's oil and gas exploration and production sector, the government has approved the proposal of Japan's INPEX Corp to pick up a 26% stake in Oil and Natural Gas Corporation's (ONGC's) Krishna Godavari basin block, KG-DWN-2004/6.
While confirming the move, a senior petroleum ministry official refused to disclose the amount of the deal.
"The Deed of Assignment and Assumption for assigning 26% of its Participating Interest to INPEX offshore East India Ltd for the KG-DWN-2004/6 block was submitted to us and we have conveyed our approval to the deal," a senior official in the Directorate General of Hydrocarbons said.
The block was awarded to ONGC-led consortium of Gail Ltd, Gujrat State Petroleum Corp, Hindustan Petroleum Corp and Oil India Ltd in 2007
"Net assets of INPEX as on March 31, 2012 were $28 billion and net income for 2011-12 was $2 billion... also INPEX is major exploration and production (E&P) company and is known for its technical competence," the DGH said.