ONGC sees one-time $326 mn gain on royalty-sharing with Cairn India

State-run explorer Oil and Natural Gas Corp (ONGC) expects a one-time gain of 15 billion rupees ($326 million) this fiscal year because of a reduction in royalty paid on Cairn India’s Rajasthan blocks,its finance director said.

In the last two years we paid a royalty of 20 billion rupees and recently the government has decided that royalty should be cost recoverable,D.K. Sarraf told reporters on Tuesday.

In June,India granted conditional approval to Vedanta for buying a stake in Cairn India from Cairn Energy,and requiring Cairn India to share royalty payments with ONGC. .

ONGC and Cairn India co-own several blocks in the western state of Rajasthan.

($146 rupees)

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