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

Omicron: Maharashtra revises travel guidelines

A day after the union health secretary wrote to it that its order on SOPs for air travellers was in divergence with guidelines issued by the MoHFW, GoI in view of the Omicron threat, the Maharashtra government on Thursday revised its guidelines for passengers arriving in the state. Issuing

Omicron: Centre asks Maharashtra to follow uniform guidelines

With the threat of Omicron, the new variant of the coronavirus, looming large, the union health ministry has written to the Maharashtra government to align orders issued by the state with the ministry’s guidelines for uniform implementation. The state government in its order dated Nove

Central Railways runs over 800 Kisan Railway trips

To ensure bigger access to farm produce and provide new markets with quick transportation and subsidy at 50%, the Kisan Rail has been bringing prosperity, joy, and hope to farmers of Maharashtra. On November 28, the Central Railway ran its 800th  trip of Kisan Rail from Sangola to Muzaffarpur.

Omicron forces Mumbai to delay school reopening

The looming threat of the new Covid strain B.1.1.529, known as Omicron, has pushed the Brihanmumbai Municipal Corporation (BMC) to postpone the reopening of schools for classes 1-7 to December 15. Earlier, these classes were scheduled to reopen from December 1. The education department of t

4 Industrial Smart Cities built under the aegis of DMIC: asserts Commerce Ministry

 Source: PTI   As many as 4 greenfield industrial smart cities or nodes are being built under Delhi-Mumbai Industrial Co

Center completed more than 3000 smart city projects valued INR 53, 575 crores: Kaushal Kishore, MoS, MOHUA

 The Minister of State, Ministry of Housing and Urban Affairs(MoHUA), Kaushal Kishore recently shared information in the Rajya Sabha, stating the central government successfully completed 3000 smart cities projects

Visionary Talks: Dr. Naresh Trehan, CMD Medanta Heart Institute with Kailashnath Adhikari



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter