Daily News Egypt

Indian GSPC may enter into firm contract with Egypt soon

10 September 2007

Within a month, Gujarat State Petroleum Corporation (GSPC) may enter into firm profit-sharing contracts with Egyptian authorities to start hydrocarbon exploration in two blocks in the country, reported the Indian paper Business Line last week.

The company has committed an investment of $150 million in two blocks in Egypt for the next four years.

GSPC holds 50 per cent operating stakes each in North Happy (offshore) and South Diyur (onshore) blocks in Egypt. India-based Alkor Petroo Ltd and Calgary-based GeoGlobal Resources (GGR) are partners in both the blocks. The consortium has already entered into a draft (or initial) profit-sharing agreement with the Government of Egypt.

“We are hopeful of entering into a firm contract with the Egypt Government in a month,” a senior company official said.