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Sunday, Sep 09, 2007
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Petroleum Corporate - Overseas Investments GSPC may enter into firm contract with Egypt soon
GSPC to invest Rs 600 cr in the 2 blocks over next 4 years. Holds 50% operating stake in each block. GSPC-led consortium in profit-sharing pact with Yemen too.
Pratim Ranjan Bose Kolkata. Sept. 7 Within a month, Gujarat State Petroleum Corporation (GSPC) may enter into firm profit-sharing contracts with Egyptian authorities to start hydrocarbon exploration in two blocks in the country. The company has committed an investment of $150 million (Rs 600 crore) in two blocks in Egypt for the next four years. GSPC holds 50 per cent operating stakes each in North Happy (offshore) and South Diyur (onshore) blocks in Egypt. India-based Alkor Petroo Ltd and Calgary-based GeoGlobal Resources (GGR) are partners in both the blocks. The consortium has already entered into a draft (or initial) profit-sharing agreement with the Government of Egypt. “We are hopeful of entering into a firm contract with the Egypt Government in a month,” a senior company official said. Activity plans
Once the pact is in place, GSPC will launch 3D seismic activity followed by drilling of six wells in the 2,500 square km offshore block (North Happy) over a period of four years. In the onshore block (South Diyur), GSPC committed a 509 sq km 2D survey followed by 200 sq km of 3D survey and drilling of two wells. Both Alkor and GGR partner GSPC in many other exploration assets in India and abroad. GGR has a 10 per cent participatory stake in the GSPC-operated KG block (KG-OSN-2001/3) and has recently kick-stormed a dispute over sharing exploration expenditure in the block. Alkor (with Jubilant Enpro) holds participatory stake in 3 GSPC-operated exploration blocks (block 19, 28 and 57) in Yemen. Yemen pact
Similar to the pact in Egypt, the GSPC-led consortium had already entered into an initial profit-sharing agreement with the Yemen authorities. “Our team has recently been in Yemen. We are expecting the formal pact to be signed shortly,” the GSPC official said. The company has promised a total investment of $45 million (Rs 180 crore) in 3 years in the exploration acreages.
Related Stories: GSPC mulls overseas arm for exploration abroad More Stories on : Petroleum | Overseas Investments
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