Gujarat Petroleum to raise Rs.25 billion for expansion

Gujarat Petroleum to raise 25 billion for expansion

Thursday, 25 October 2007, 07:00 Hrs
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Ahmedabad: Gujarat State Petroleum (GSPC), a state government undertaking, is raising 25 billion to expand its Krishna-Godavari (KG) basin gas project.

A consortium of 14 nationalised banks and the State Bank of India (SBI) is raising the funds through external commercial borrowings and foreign currency non-resident bank deposits. The debt is syndicated by the SBI Capital Markets.

Talking to IANS, Jagatheesa Pandian, managing director of GSPC, confirmed the loan arrangement.

GSPC's expansion plans include development of the KG-17 well, which is one of the most significant discoveries for GSPC. It is for the first time that GSPC has struck oil as well as gas in the same well.

Pandian said that initial testing at the well indicates estimated reserves of 20 trillion cubic feet of natural gas with a value of approximately $50 billion.

Incorporated in 1979 as a petrochemical company, GSPC has today metamorphosed into a large-scale energy organisation and a key player in the energy sector.
Source: IANS
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