ONGC hires consultants to evaluate GSPC KG block reserves

US-based Ryder Scott Petroleum Consultants will evaluate gas properties and independently certify the reserves quantities

GN Bureau | August 29, 2016


#Sushma Swaraj   #Nirmala Sitharaman   #Facebook   #Twitter   #social media   #Digital India   #ONGC   #GSPC   #consultants   #KG block  

 State-owned ONGC has hired US-based Ryder Scott Petroleum Consultants to assess natural gas reserves in Gujarat State Petroleum Corp's (GSPC) KG (Deendayal) block before deciding to buy a stake in it.

 Ryder Scott has been asked to evaluate gas properties in the GSPC block and independently certify the reserves quantities. It will submit its report by November.
 
 Since the BJP-led government came to power at the centre, the Gujarat government firm GSPC has been seeking to sell a majority stake in its Deendayal block in the Bay of Bengal to ONGC to avoid defaulting on loans. ONGC initially was not keen to buy stake in the block as it felt the block had reserves far less than what GSPC was claiming and the asking price for the stake was not commensurate with the returns.
 
 According to a news report, there is tremendous amount of pressure on ONGC to buy stake in GSPC block. That is why it has decided to get the reserves in the GSPC block validated.
 
 GSPC was to begin gas production from the block in 2013 but after sinking in $3.6 billion it was found that gas reserves are one-tenth of 20 trillion cubic feet claimed in 2005 and that too is technically difficult to produce.
 
 In the process, it amassed Rs 19,576 crore of debt, on which interest cost was Rs 1,804.06 crore in 2014-15, according to the CAG. And against this its revenue was Rs 152.51 crore in 2014-15.
 
 GSPC has been doing trial production of a very small volume of gas from August 2014 and has not yet reached commercial production yet. And in absence of revenue commensurate with the debt servicing obligations it risks of becoming a defaulter. To bail out of the situation, it offered to sell 50 percent stake to ONGC. Money from ONGC can repay a part of the debt and the remaining would become a joint liability of the two firms.
 

Comments

 

Other News

Allow uninterrupted discussion on Finance Bill: Civil society to Hamid Ansari

Almost a week ago, Finance Bill, 2017, was passed in the Lok Sabha as a money bill in the midst of a walk out by the opposition.  In the 92-page document of the bill, centre has pushed 40 amendments to various acts including the IT Act. Eminent people like Fali Nariman, Girish Karnad, TM Krishna, Arun

BHEL unveils 250 MW eco-friendly lignite power plant in Gujarat

  Bharat Heavy Electricals Limited (BHEL), a Maharatna PSU, has successfully commissioned 250 MW unit based on eco-friendly circulating fluidized bed combustion (CFBC) technology, using low grade coal (lignite) as the primary fuel.    The 250 MW lignite

Right to recall not recommended by law panel

  The Law Commission which had examined the issues of right to rejection and the right to recall, has not recommended for the same, the Lok Sabha was informed.   Union minister PP Chaudhary said that the Law Commission of India was requested in January, 2013,

`Shiv Nadar most generous Indian`

HCL founder Shiv Nadar tops the Hurun India Philanthropy list with Rs 630 crores donation towards education sector. Infosys co-founder Kris Gopalakrishnan and his wife Sudha Gopalakrishnan came in second with a donation of Rs 313 crores primarily towards healthcare, social development and education.

Keel for first ship of the 5 CGOPV project laid in GSL

Keel of the first Coast Guard Offshore Patrol Vessel (CGOPV) of the new 5 CGOPVs project for the Indian Coast Guard was laid at Goa Shipyard Ltd (GSL) recently by ADG K Natarajan, PTM, TM Coast Guard Commander (Western Seaboard), in the presence of RAdm (Retd) Shekhar Mital, NM Chairman and Managing Dire

Digital Village pilot project in 1050 gram panchayats

  A pilot project of Digital Village (DigiGaon) is to be implemented in 1050 Gram Panchayats (GPs) spread across 30 States/UTs, the Lok Sabha was informed.   Union minister PP Chaudhary said that the approved outlay for implementation of the project for finan

Video

योगी आदित्यनाथ ने किया गृह प्रवेश

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter