GSPC tight focus in Indonesia

Vol 17, PW 7 (31 Oct 13) News in Brief
     

GSPC will focus on its onland 2309-sq km South East Tungkal (SET) block in Indonesia rather than bid for more blocks in the Southeast Asian country's oil and gas round underway.

GSPC wants to keep its foreign M&A strategy on hold until the dust settles from its Rs2460cr ($400m) takeover of Gujarat Gas and the delayed Deen Dayal West project comes online, freeing up resources. Asian Oilfield Services completed a 239-lkm 2D survey at SET on October 15 and GSPC later hired a local Indonesian company to process data.

GSPC (50.5%) and Essar (49.5%) committed $7m on the six-year Phase-I work programme to shoot 223-lkm 2D and drill a single well. “The Indonesian government is very cooperative," we hear.

"If we don't find a good well location we can abandon the block.” GSPC and Essar paid a $1.1m signature bonus and a $2m ‘performance’ bond for the block.

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