The cabinet, on Friday, approved state-run explorer Oil and Natural Gas Corporation (ONGC) to buy a 33 percent stake in an Egyptian deepwater gas block from operator Royal Dutch Shell, a minister said.

“ONGC’s proposal to buy stake in Shell’s block in Egypt has been cleared. The amount is around $380 million,” the cabinet minister, who did not wish to be identified, said.

Earlier, Shell has announced the North East Mediterranean Deepwater block, in which it holds 84 percent, has probable reserves of 15 trillion cubic feet of gas, according to a U.S. Department of Energy Web site.

Malaysian state oil and gas company Petronas owns the remaining 16 percent in the concession, which was awarded in 1999.

The Centre has set a target for ONGC Videsh, the overseas investment arm ONGC, to produce 6.34 million tonnes of oil and 1.65 billion cubic metres of gas.