The Hindu Business Line : GSPC seeks RBI nod to raise $325 m abroad

This is part of the company’s programme for raising up to Rs 2,000 crore loan finance in a phased manner. The fund will be used primarily in GSPC’s KG basin asset, which is reportedly on the verge of entering the development stage.

GSPC appointed SBI Caps for loan syndication from both domestic and overseas sources last year.

Commenting on the progress of exploration in the KG-OSN-2001/3 block where it had struck gas, company sources said that there was marginal delay in applying before the Directorate General of Hydrocarbons for commerciality of the KG-8 find and submission of the field development plan.

“We are taking a little bit more time to prepare the development plan. We have big plans for KG. Hopefully things will be finalised by the next month,” a sources said.

Overseas investments

KG basin apart, the company has recently committed to invest up to $470 million in drilling 20 wells in two blocks in the Western Desert and in the offshore East Mediterranean, over a period of four years beginning March 2008. The Egyptian Petroleum Minister, Mr Sameh Fahmy, has signed agreements with GSPC in this regard last month. The Gujarat State PSU holds 50 per cent operating stake in the two blocks.

On the huge investment commitments in India and in abroad, company sources ruled out any strain on the balance sheet.

“We have made a profit of Rs 700 crore this year from our operating assets in Hazira (with Niko Resources) and Ahmedabad onshore. We have adequate cash to take care of immediate investment commitments both in India and abroad. We have planned the IPO later this year, to meet the peak investments requirements for next few years,” the source said.

GSPC’s fund requirements are expected to increase substantially by the end of this year primarily for development of KG asset, which is now expected to come into production by 2010-11.

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