India's ONGC takes over three oil fields from BG Group

Oil is seen as key to providing India with a secure energy supply

India's biggest oil producer ONGC will take over three offshore exploration blocks held by the UK's BG Group.

BG Group will pay ONGC $50m (£32m) as part of the deal and to cover past costs related to drilling.

State-owned ONGC has been expanding its domestic operations and, including the BG deal, has increased its fields by 15 in the current financial year.

The move comes as India looks to provide steady energy sources for its expanding economy.

ONGC will begin to operate the blocks, which are off India's east coast, from next month, the company's chairman Sudhir Vasudeva was quoted as saying by the Reuters news agency.

The Indian oil company announced earlier that it had found four new potential hydrocarbon reserves in the country's western Gujarat state and north-eastern state of Assam.