The ONGC Board on Wednesday gave its go ahead to BG Group PLC's proposal to exit three joint venture exploration blocks in the East Coast.

Mr Sudhir Vasudeva CMD of ONGC said that BG would pay USD 50 million to ONGC for unfulfilled drilling program commitments.

Asked why BG was exiting, he said that “This was because BG was consolidating and shuffling its portfolio.”

BG is exiting its 25% participating interest in MN-DWN-2002/2 block in the Mahanadi basin. It is also exiting two blocks in the Krishna Godavari basin where it holds 30 per cent in KG-DWN-98/4 and 45% in KG-OSN-2004/1.

(Sourced from BL)