GSPC might abort KG sale if price not right

Vol 10, PW 13 (19 Oct 06) News in Brief

Gujarat state authorities have for the first time hinted they might abort the sale of equity in KG-OSN-2001/3 if the price is "not right".

Says a cabinet minister: "Only if the price offered is worth our valuation will we offer a holding. We know the reserves are there but the total KG basin potential is still unexplored.

If Reliance and ONGC can still make discoveries there we are very confident that our unexplored areas will give us even more reserves. Theres also talk that GSPC now wants to sell only up to 20% of the block, not 30% as thought earlier, boosted by comments from DGH boss VK Sibal that in-place gas could far exceed 20-tcf.

On 6th October, senior Gujarat bureaucrats met to discuss how to speed up the transfer of 20% of the block to the government. With 20% to a strategic partner, this would leave GSPC with 40%; Jubilant Enpro with 10%; and 10% split between GeoGlobal Resources and its owner Jean-Paul Roy.