GSPC hopes in vain for GeoGlobal money

Vol 18, PW 16 (09 Apr 15) News in Brief

GSPC has no hope of recovering any cash from its estranged Canadian partner GeoGlobal Resources.

But that’s not stopping it listing the disputed Rs1613.32cr ($257.71m) amount in annual accounts for 2013-14 under, ‘Loans and Advances’. GSPC management in a bout of delusional fantasy appears confident that Arizona-based Key Capital and its president Donald Benard, which wrested control of GeoGlobal on February 18, from founder Jean-Pal Roy is ready to come to an amicable understanding and pay up.

GSPC tried to strip GGR of its 10% stake at KG-OSN-2001/3 on August 18, 2010 over a disputed Carried Interest Agreement. But without ministry approval for a change in the PSC this isn't possible.

“More than four years have passed but we are still waiting,” GSPC tells us. “Only when the oil ministry declares GGR a defaulter can the 10% GGR stake be transferred to GSPC.