Cairn begins marketing its gas from CB-OS/2
Cairn Energy has begun the search to find a buyer for its massive gas discovery near Hazira.
This report learns more than six companies in Gujarat have responded positively to Cairn's request to show an 'Expression of Interest' in the gas from its CB-OS/2 concession, which is scheduled to come to market by the end of next year. Among them: Gujarat Gas, Gas Authority of India, Enron and Gujarat Torrent Energy Corporation.
All have submitted detailed proposals to Cairn's Chennai office, which is overseeing the process. Cairn is evaluating the proposals, which contain details of how much gas the buyers are interested in acquiring, what price they are prepared to pay, and on what date they want it delivered.
The whole exercise is being conducted under a cloud of secrecy, with interested parties committed to maintaining strict confidentiality. No public notice was issued.
Cairn carried out extensive research on the Gujarat market before approaching each company individually and is presently evaluating the creditworthiness of the bidders. "When we have decided we will put up the recommendation to the joint venture," learns Petrowatch, "Expressions of interest have come from a whole range of people." The company was pleasantly surprised to receive an unsolicited expression of interest from Gas Authority of India, which buys its Ravva gas and with whom it has a "good working relationship" Cairn is encouraged by the determination of state and central authorities to get the gas to market fast.