Geoglobal and GSPC friends again

Vol 13, PW 15 (14 Jan 10) News in Brief

GSPC wants to resolve its damaging â€کcarried interest’ row with Canadian explorer GeoGlobal Resources at Deen Dayal block KG-OSN-2001/3 before it hits the market with an IPO.

PETROWATCH learns a three-man committee including GSPC managing director Tapan Ray and energy secretary DJ Pandian met GeoGlobal chairman Jean-Paul Roy and fellow director David Conklin on December 22 for talks that could consign this damaging row to the history books. “Agreement is near,â€‌ we hear.

“More meetings are planned.â€‌ GSPC wants to launch its IPO this year and hopes to raise $1bn when the issue hits the market in March or April.

“Having an unresolved dispute about â€کcarried interest’ won’t look good in the (Red Herring) prospectus,â€‌ adds a source. GSPC claims GeoGlobal owes it $143m plus interest as its share of the exploration cost at the block.

But GeoGlobal, with 10% in the block, says GSPC agreed to â€کcarry’ all the Canadian explorer’s exploration expenses at the block.