No more costly foreign adventures for GSPC

Vol 19, PW 8 (17 Dec 15) People & Policy

After relinquishing 13 blocks in India and withdrawing from Egypt and Yemen, GSPC is determined to get rid of its three remaining overseas blocks in Indonesia and Australia.

A senior GSPC source tells PETROWATCH formalities are nearing completion to relinquish the 2309.59-sq km Southeast Tungkal block in the Jambi region of Indonesia as well as offshore Australian blocks WA-388 and JPDA-06-103. "All work in relinquishing the blocks will be over before the end of this fiscal (2015-16)," he says.

"But we'll still consider getting into other good blocks in the future." Once completed by March 31, 2016, GSPC will be left with just 43 blocks in India, down from 68 it once held across the globe.

GSPC managing director Atanu Chakraborty decided to downsize the company's portfolio soon after he took charge in April this year after receiving the green light from the Board and Gujarat energy minister Saurabh Patel. "GSPC has taken a big hit in its global operations," adds a company source.

"It was time to review and cut losses." Chakraborty has since been telling GSPC management he wants a "neat, clean and healthy" balance sheet this fiscal.

Officially GSPC will deny it but industry sources believe the company is experiencing a severe 'cash crunch' forcing it to walk away from under-performing assets.