GSPC to begin oil, gas exploration overseas

Close to inking deals with companies in Libya, Oman and Qatar

State-owned Gujarat State Petroleum Corporation is set to go overseas for exploration and production of oil and gas.

The corporation recently discovered over 20 trillion cubic feet of natural gas, valued at approximately Rs 2 lakh crore, in the Krishana-Godavari basin.

GSPC is initially eyeing Libya, Oman and Qatar to commence operations. It is also examining extending its operations outside the country with strategic alliances with overseas petroleum companies. It has already identified a consortium of international companies in the Gulf region for the purpose and talks are on to seal the deal.

"GSPC plans to actively participate in the upstream hydrocarbon industry, both within Gujarat and outside, onshore and offshore. We are in talks with a few companies in Libya and Qatar for partnerships," M Y Farooqui, general manager, projects, GSPC, said on Friday.

"We have done our home work and are ready for the prequalification of bids, which is expected to be started by mid-July this year. GSPC, being a state owned company, it would give them confidence to award the blocks to us. Our recent discovery of natural gas in the Krishna Godavari basin, is so far biggest in the country and has boosted our confidence to venture overseas," he added

GSPC is planning to be an operator with a major share in oil and gas exploration and production in the region. It plans to bring the gas into India in liquefied (LNG) form.

GSPC, a wholly owned subsidiary of the Gujarat government, started its drilling operations in Krishna-Godavari basin with first well KG#1 on July 31, 2004 and within a short span of 300 days, and after spending Rs 250 crore, discovered the natural gas reserves in the region.

"After our gas discovery, we will be competing with international oil and gas majors and would bid for all available blocks in the Gulf region. In tune with the international trends, GSPC is committed to maximise the use of information technology in its operations for improved efficiency," said Farooqui.

GSPC also aims to be an aggressive participant in the New Exploration Licensing Policy (NELP) rounds of bidding and is revamping its organisational set up for handling operatorship of more and more fields and blocks in the future.

GSPC, which owns 21 blocks and fields for exploration, development and production of oil and natural gas, eyes to get four more block in the fifth bidding round under the new exploration and licensing policy (NELP-5).