Six companies interested in GSPC block sale

Vol 24, PW 18 (29 Jul 21) Exploration & Production

Six companies are interested in GSPC's proposal to farm out its non-operator stakes at five upstream blocks as it slowly pursues its goal of exiting the upstream E&P sector.

On June 26 (2021), GSPC's energy research wing, Gujarat Energy Research and Management Institute (GERMI), held a virtual pre-bid for three onshore and two offshore blocks: CB-ONN-2004/3; CB-ONN-2004/1; CB-ONN-2004/2; MB-OSN-2005/1 and GK-OSN-2009/1. Amongst those attending were Analava Chakraborty and Swapnanil Basumathary from IndianOil; Lalit Kiri, Satish Gupta and Madan Bhandari from Barmer-based Kiri and Company; Chinmay Varma from Australian explorer Oilex; Sid Saraogi and PC Saraogi from the Kolkata office of Nippon Power; Swapnil Shah, Raj Soni and Khitish Nayak from Mehsana-based CVS Oil and Gas; and Prabhakar Shankar from the Mumbai office of Arabian Oilfield Supplies and Services.

GERMI had invited Request for Proposal documents on June 15 (2021) for CB-ONN-2004/3 where GSPC holds 35%, CB-ONN-2004/1, where it holds a 40% stake, CB-ONN-2004/2, where it has 45%, and Mumbai offshore block MB-OSN-2005/1 and Kutch offshore block GK-OSN-2009/1 where it has 20% at each. ONGC operates all five fields.

"Nippon, Kiri and Oilex already have a Gujarat connection," a GERMI source tells us. "They already have a presence here."

Nippon operates two DSF-1 fields in the Cambay basin: 2.35-sq km CB/ONDSF/Kamboi/2016 and 9.15-sq km CB/ONDSF/West Bechraji/2016. In the second week of June (2021), Nippon loaded its first road tanker from Kamboi with 75 barrels of crude for despatch to the ONGC Mehsana central tank farm for onward transmission to IndianOil's 13.7m t/y Koyali refinery near Vadodara.

In May (2021), Kiri and Company acquired Oilex's 40% at the Bhandut field and is also talking to GSPC for its 60% stake in the field. Kiri is interested in CB-ONN-2004/2 or the Vadtal field.

"Kiri raised several questions about Vadtal at the pre-bid," we learn. Vadtal produces 463 b/d oil from nine wells and holds 12.1m barrels of oil, according to GSPC's tender document.