ONGC's Oil, Gas Block Stake Sale Hits Roadblock

India's Oil and Natural Gas Corporation's (ONGC) bid to sell stake in its deep water and ultra-deep water oil and gas blocks to ConocoPhillips and Shell has hit a ministry of defence (MoD) block.

According to Business Standard the MoD’s stringent norms on exploration in 'no-go' areas is posing a big challenge in taking the deal forward.

"While ConocoPhillips is keen on a deal, the specifications of MoD on pursuing exploration in deep water blocks are creating a problem," said a senior ONGC executive told Business Standard on condition of anonymity.

ONGC began talks with ConocoPhillips last year and was hopeful of finalising the deal during the first half of this year.