Press Release No. 13

7 March 2008

 

GSPC SIGNS CONCESSION AGREEMENT WITH EGYPTIAN GOVERNMENT

Securing Energy Security for the nation

 

March 10, 2008, Gandhinagar

 

    Gujarat Government owned Gujarat State Petroleum Corporation (GSPC) has signed concession agreement for petroleum exploration and exploitation for two exploration blocks namely N. Happy and S. Diyur in Egypt on 9th March, 2008.  Agreement was signed on 9th March 2008 in Cairo between Gujarat State Petroleum Corporation Limited and Egyptian Government.  Hon’ble  Minister of Petroleum Mr. Sameh Fahmy signed both the agreements on behalf of the  Egypt  Government  whereas GSPC consortium was  represented  by  Mr. M. Y.  Farooqui,  General Manager  ( P & D ). Mr. A Gopinathan, Indian Ambassador to Egypt was also present during the signing ceremony.

 

Gujarat Chief Minister, Shri Narendra Modi has congratulated GSPC for this achievements.

 

The offshore block N. Hap’y located in the Mediterranean Sea admeasuring 4125 sq kms area holds good potential for oil/gas discovery. GSPC has committed to acquire approx 2500 sq kms of 3D Seismic and drilling of six wells during the first phase of exploration period over four years.

 

  • Acquired 8 exploration blocks outside India including two in Egypt with a total acreage of 77,612 sq. km.

  • GSPC is the Operator of the two highly potential blocks in Egypt for the which the agreement has been signed

  • US$200 Million exploration activity committed for the Phase-I over 4 years

  • 8 wells are to be drilled in the Phase-I in these two exploration blocks.

The onshore block S. Diyur located in Western Desert of Egypt is spread over approx. 38,000 sq. kms  and find itself in  the c lose  vicinity of  some  of the major discoveries in recent past. GSPC consortium has committed to acquire aero magnetic data over the entire block in addition to 2D/3D seismic and drilling of two wells during the phase-I exploration period over four years.

Consequent upon signing of the agreement GSPC being the Operator for both the above blocks would be embarking on the commencement of work committed under the phase-1 exploration period.

 

GSPC Consortium has committed approx. 200 Million US$ for exploration activity over the first four years in the two blocks.

 

In realization of the Gujarat Government’s vision to secure energy security, GSPC has set the mission to capitalize on its success and expand its portfolio by embarking upon global exploration pursuits.  Marking the onset of its momentous journey towards  building global energy infrastructure, with the full support of the State Government, GSPC has acquired three exploration blocks in Australia, three in Yemen and two in Egypt making the total acreage acquired by GSPC to 77,612 sq. kms in the above three countries.

 

While all round efforts are being put into explore and discover more and more hydrocarbons in India, the efforts by the Government of Gujarat to acquire more and more acreages/assets outside the country, would not only supplement the efforts to attain energy independence, but also improve the economic stability leading to an improved standard of living.

 

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