The board of state-owned Oil and Natural Gas Corp (ONGC) has approved signing of a preliminary agreement for buying a stake in Gujarat government firm GSPCÂ’s KG basin gas block, reports Business Line.
The Board of ONGC at its meeting on September 8 approved signing of an MoU for taking a stake in Gujarat Petroleum Corp LtdÂ’s (GSPC) difficult gas block, sources privy to the development said, says the report.
The approved MoU also incorporates a dispute resolution mechanism wherein any differences over issues like valuation or natural gas reserves would be referred to a three-member committee of outside experts.
The news item says that this is perhaps for the first time that a memorandum of understanding (MoU) sets out a dispute resolution committee and it perhaps is an indication of the pitfalls that ONGC anticipates in buying a stake in the block.
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