GSPC appoints UBS as advisor

Gujarat State Petroleum Corporation (GSPC) has appointed UBS as its financial consultant to prepare data for the proposed partners for its KG basin gas discovery, which is valued over $50 billion.

Speaking to Business Standard, Gujarat government sources confirmed that UBS has been assigned the job to prepare bidding documents for the proposed partner to develop KG basin 20 trillion cubic feet gas discovery.

GSPC is planning to set up an offshore platform, pipelines (sub-sea & onshore) and onshore production facility to facilitate the development of its Deen Dayal Gas Discovery.

It has invited bids for engineering, procurement, installation & commissioning (EPIC) for offshore platform, pipelines (sub-sea & onshore) and onshore production facility.

UBS has been selected to decide on EPIC contractor for the discovery. Sources said UBS will set up two data rooms for the interested bidders. One of rooms which will deal with technical side of the KG basin discovery will be set up at Dallas in the US.

The second data room which will deal with legal and commercial aspects of KG basin gas field development will be set up at Gandhinagar. The data room at Gandhinagar will also deal with production sharing agreement for KG basin gas field.

Tendering process for the field developer selection is expected to commence in June 2006 and the tentative schedule for first gas is in 1st quarter 2008 calendar year.

GSPC has an 80 per cent interest in the KG basin block, while the balance 20 per cent interest is shared by Jubilant Enpro and Geoglobal.

The well was spudded on January 17, '05 and drilled up to 5,061 metres. The company had to abandon digging the first two wells after drilling up to 2,625 metres and 2,875 metres, respectively. The first three wells were dug with an investment of Rs 250 crore.