NEW DELHI: Gujarat State Petroleum (GSPC) plans to invest $1 billion (about Rs 4,100 crore) to make its eastern offshore Krishna Godavari (KG) basin gas field operational by 2011. It is also contemplating an initial public offer (IPO) for funding part of the investment. The company may dilute up to 20% through the IPO.
The Gujarat government is, however, in no mood to sell 30% to a foreign strategic partner, as proposed earlier, Gujarat energy minister Saurabh Patel said. The state government owns 100% in GSPC. Gujarat chief minister Narendra Modi, meanwhile, denied any proposal to divest stake in the energy company through an IPO. “We are financially sound and do not need to go to the market,” Mr Modi said.
GSPC, which is about to receive government approvals for development plans for KG-8 gas field, has struck more gas in the block KG-OSN-2001/3. KG-22 holds three trillion cubic feet (Tcf) of gas, Mr Modi said, adding the entire block in his assessment holds more than 20 Tcf reserves. From 2011, GSPC will produce 8-10 million standard cubic meters per day of gas from the block. KG-8, according to the development plan submitted to oil regulator DGH, holds a minimum of 2.6 Tcf and a maximum of 5.6 Tcf recoverable reserves and can produce about 6 mmscmd gas.
Mr Patel said GSPC has taken 10 mmscmd capacity in Reliance Inds’ east-west pipeline to transport gas to consumers.
The government has also acquired 300 acres at Kakinada in Andhra Pradesh for on-shore gas processing plant.
The Gujarat government is, however, in no mood to sell 30% to a foreign strategic partner, as proposed earlier, Gujarat energy minister Saurabh Patel said. The state government owns 100% in GSPC. Gujarat chief minister Narendra Modi, meanwhile, denied any proposal to divest stake in the energy company through an IPO. “We are financially sound and do not need to go to the market,” Mr Modi said.
GSPC, which is about to receive government approvals for development plans for KG-8 gas field, has struck more gas in the block KG-OSN-2001/3. KG-22 holds three trillion cubic feet (Tcf) of gas, Mr Modi said, adding the entire block in his assessment holds more than 20 Tcf reserves. From 2011, GSPC will produce 8-10 million standard cubic meters per day of gas from the block. KG-8, according to the development plan submitted to oil regulator DGH, holds a minimum of 2.6 Tcf and a maximum of 5.6 Tcf recoverable reserves and can produce about 6 mmscmd gas.
Mr Patel said GSPC has taken 10 mmscmd capacity in Reliance Inds’ east-west pipeline to transport gas to consumers.
The government has also acquired 300 acres at Kakinada in Andhra Pradesh for on-shore gas processing plant.
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