GSPC Seeks Part­ners for on­shore blocks, Gets Magna en­ergy, es­sar oil, tata Petro­dyne, oth­ers on board

Resource Digest - - RESOURCE DIGEST -

State-owned oil and gas ex­plo­ration firm Gu­jarat State Petroleum Cor­po­ra­tion (GSPC) is seek­ing part­ners for nearly 20 on­shore blocks. It has en­tered into pre­lim­i­nary agree­ments with close to eight firms to re­view the data of the blocks, two of­fi­cials privy to the de­vel­op­ment said.

Of the 22 blocks on of­fer for part­ner­ships, 16 are pro­duc­ing hy­dro­car­bon. Nearly eight firms in­clud­ing the UK’S Magna En­ergy, Es­sar Oil, Tata Petro­dyne, IOC and Bharat Petrore­sources, among oth­ers, have signed non-dis­clo­sure pacts with GSPC to study the ge­o­log­i­cal data of the blocks, said one of the of­fi­cials, who did not wish to be named.

The firms would be of­fered ‘par­tic­i­pat­ing in­ter­est’ un­der the ex­ist­ing pro­duc­tion shar­ing norms. The pro­duc­ing blocks are ma­ture and in need of tech­ni­cal as­sis­tance to make hy­dro­car­bon flow from them. This is why GSPC wants to farm out to part­ners who could bring tech­ni­cal ex­per­tise, said an­other of­fi­cial.

The fi­nal de­ci­sions of the part­ners would be de­cided by way of bid­ding and are likely to be fi­nalised by De­cem­ber. GSPC has roped in con­sul­tancy firm EY for the job.

This part­ner­ship is in ad­di­tion to one where cen­tral gov­ern­ment-owned ONGC and GSPC have signed an ini­tial pact that would pave the way for ONGC buy­ing a ma­jor­ity stake in the lat­ter’s 1,850 square km KG Basin offshore block, KG-OSN-2001/3.

In FY16, GSPC re­ported to­tal rev­enues of Rs 10,724.97 crore, on which it recorded a loss be­fore tax of R875 crore and net loss of Rs 804.42 crore. The loss was be­cause of ad­verse im­pact on prof­itabil­ity due to writ­ing off ex­plo­ration cost, im­pair­ment of pro­duc­ing prop­er­ties due to lower oil and gas price.

Of the pro­duc­ing Gspc-op­er­ated blocks in FY16, the In­goli and Sanand East field of Ahmed­abad block were pro­duc­ing 725750 bar­rels of oil per day (bopd); 200-250 bopd and 25,00030000 cu­bic me­tres of gas per day was pro­duced from the Tara­pur block.

In the case of non-op­er­a­tor blocks of GSPC in FY16, Karan­na­gar, Vad­tal, Dho­lasan, Al­lora, Kanawara, North Karhana, Hazira and Dabka were pro­duc­ing hy­dro­car­bon.

GSPC said in its last an­nual re­port that oil and gas vol­umes, which de­pend on the yield from the com­pany’s pro­duc­ing fields, have a sig­nif­i­cant im­pact on its re­sults of op­er­a­tions. “Cur­rently, all of our pro­duc­ing fields are within the Cam­bay basin, where com­pact holds par­tic­i­pat­ing in­ter­ests in 16 pro­duc­ing fields,” it said.

The Cam­bay basin is a ma­tur­ing resource prov­ince with de­clin­ing pro­duc­tion levels, par­tic­u­larly of nat­u­ral gas. GSPC in­tends to con­tinue ex­plo­ration ac­tiv­i­ties in its ex­ist­ing ex­plo­ration blocks to dis­cover new oil and gas re­serves for de­vel­op­ment. “The com­pany’s fu­ture pro­duc­tion will be sig­nif­i­cantly de­pen­dent upon suc­cess in find­ing and de­vel­op­ing new re­serves in a timely and cost ef­fec­tive man­ner,” said the an­nual re­port.

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