GSPC plans to invest $1.8 bn in KG basin
1-Jan-1970


State-owned Gujarat State tate-owned Gujarat State Petroleum Corp. Ltd (GSPC) has planned a peak production capacity of 200 million cu. ft per day of gas by 2015-16 from its Deendayal block in the Krishna-Godavari (KG) basin, off the Andhra Pradesh coast.
The company also proposes to invest $1.8 billion (Rs8,280 crore) in the project over the next five years, managing di- rector Tapan Ray said.

India currently produces 142 million standard cu. m per day (mscmd) of gas and plans to ramp up capacity to 186 msc- md by 2013. The govern- ment is de- pending on ex- plorers such as GSPC, Mukesh Ambani- owned Reli- ance Indus- tries Ltd and state-owned Oil and Natu- ral Gas Corp.

Ltd and Oil In- dia Ltd, among others, for the additional production.
GSPC, which has an overall current gas production of 1 mscmd of gas and 1,000 bar- rels of oil from its assets in Hazira and Cambay basin, plans to produce 6 mscmd of gas and 5,000 barrels of crude oil by financial year 2012-13 from its blocks.
GSPC had announced its biggest discovery of 20 trillion cu. ft (tcf) of natural gas from the Deendayal block in mid-2005 but India's director- ate general of hydrocarbons has officially ratified a gas find of 2 tcf.

Currently, GSPC holds 80% stake in the block while Jubi- lant Enpro holds 10%, GeoGlo- bal Resources Inc. (GGR) of Canada and J.P. Roy, chairman of GGR, hold 5% each. Jubilant Enpro is part of the Jubilant group. The promoters of HT Media Ltd, which publishes Mint, and promoters of Jubi- lant are closely related.

GSPC has interests ranging from oil and gas exploration, production, transportation, dis- tribution, power generation, in- formation technology and edu- cation. It has 267,141 sq. km of total area in 64 blocks, of which GSPC is an operator in 19 blocks--nine of them overseas.

The company, whose Rs4,000 crore initial public of- fer (IPO) has been put on hold, also plans to offer stakes for private placement to raise around Rs1,500 crore. The Gu- jarat government holds around 97% of equity in the firm. ?While we are waiting for an opportune time for a pub- lic issue, since we have re- ceived various offers for pri- vate place- ment, we may examine the possibility of going in for another round of private placement,? said Ray.

GSPC had plans to go to the market with a public issue of 448 million equity shares of Re1 each. The issue will consti- tute 16.7% of the post-issue paid-up capital of the compa- ny. It had raised Rs990 crore through the first round of pri- vate placement.
The company registered a net profit of Rs564.9 crore on a turnover of Rs6,504 crore in the last financial year.

?We had gone for the pre- marketing of the IPO. The tim- ing was such when the global uncertainties came. So most of our lead managers advised us that we will derive better value when we wait a bit,? Ray add- ed. ?It should not appear that we are desperate for money.?


Source: MINT, Delhi, Monday, 9th August 2010
                          Petronet LNG Stock Quotes                                       
©Petronet LNG Limited                                                            Home | Contact Us | Disclaimer | Quick Links | Mail Servers: Primary / Secondary |