Oil and Natural Gas Corporation Limited has received a letter dated August 9, 2024 from the Ministry of Petroleum & Natural Gas, Government of India (GoI), inter-alia, conveying approval of the GoI for infusion of additional equity capital upto Rs. 10,501 crore in ONGC Petro additions Limited (OPaL), conversion of back stopped Compulsorily Convertible Debentures (CCDs) amounting to Rs. 7,778 crore and balance payment of Rs. 86 crore with respect to share warrants, totalling to Rs. 18,365 crore.

This will change the status of OPaL into a subsidiary of ONGC with 95.69% equity stake.

The approval also provides a roadmap for OPaL. The Government of India has also permitted to allocate 50 per cent of the annual gas production from new wells or well interventions in nomination fields of ONGC or upto 3.2 MMSCMD of domestic natural gas, whichever is lower, for providing feedstock support to OPaL, at a price up to 20% above APM price. APM Price of natural gas per MMBTU is 10% of Indian crude basket price per barrel of oil.