Sun wins DGH Interlink deal approval

Vol 18, PW 22 (02 Jul 15) News in Brief
     

Sun Oil & Natural Gas is waiting for oil ministry approval before it pumps in $500,000-$1.2m to begin production at BSE - listed Interlink Petroleum's Gujarat fields.

On June 19, the DGH cleared a binding MoU signed between Sun Oil & Natural Gas, a sister company of Mumbai headquartered pharma giant Sun Pharma, and Interlink on March 30. "The DGH has cleared the MoU," confirms a senior Interlink source.

"Oil ministry approval is expected this month (July)." Once the clearance comes in, billionaire Dilip Shanghvi's Sun Pharma is planning a field study of the 4-sq km Baola and 12.7-sq km Modhera fields. A Sun team will visit Interlink's Delhi office to go through field data and understand the reservoirs.

Under the MoU, Interlink's PSCs will eventually be transferred to Sun, which will decide on taking a stake in cash-strapped Interlink based on the pilot at Baola and Modhera. Contacted by this report, Sun Oil & Natural Gas CEO Padam Singh declined to comment.

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