GeoGlobal denied KG data by GSPC

Vol 12, PW 16 (15 Jan 09) News in Brief
     

GeoGlobal Resources has complained to GSPC about the denial of data for wells drilled after the completion of the minimum work programme on September 30, 2008 at KG-OSN-2001/3.

In a January 9 letter, GeoGlobal says it has not received data on wells KG#19, KG#21 and KG#32. “GSPC has not replied,â€‌ says a source.

But an industry insider says that GSPC had decided to cut data flows to GeoGlobal until it brings in a 10% share of the exploration costs on the block, which it contends is necessary since the minimum work programme was completed. GeoGlobal counters that GSPC’s move is a “violationâ€‌ of the PSC.

In August 2008, the three contractor parties (GSPC-80%, GeoGlobal-10% and Jubilant-10%) agreed to proceed with new exploration after the minimum work programme ended. GeoGlobal also says that under the Carried Interest Agreement, GSPC is legally bound to â€کcarry’ all expenses for the entire exploration and development phase.