ONGC will acquire Gujarat State Petroleum Corporation's (GSPC) 80% interest in the KG OSN 2001/3 block off the east coast of India. The block includes the Deen Dayal West gas/condensate fields which have already begun trial production. Out of the total consideration of US$1.195 billion US$200 million will be towards six other discoveries on the block. The conservative price paid below our valuation reflects GSPC's financial challenges and the difficulties encountered during development. We anticipate that ONGC will come up with a new field development plan to monetise the fields.