GSPC to start overseas upstream arm in next 2-3 years

Energy conglomerate, Gujarat State Petroleum Corporation (GSPC), plans to start its upstream overseas arm in the next two to three years to look after its global oil and gas explorations, a top company official said.

"We are likely to start an upstream overseas arm in the next two to three years. The overseas arm will look after our international exploration activities within the group," GSPC's Managing Director, Tapan Ray, told PTI, adding "as soon as these overseas blocks start production, we will be able to launch the company."

However, the company has not decided any name for the company yet, he said.

Currently, GSPC has 11 blocks across four countries.
       
"We commenced our overseas exploration activities in 2006 and now we have exploration blocks in Yemen, Egypt, Indonesia and Australia," Ray said.
       
The Gujarat-based public sector company is also planning to hit the market with its Initial Public Offering (IPO) in June-July.

GSPC proposes to raise between Rs 3,500-4,000 crore, one of the largest offerings by any state-owned entity so far.
       
The company has decided to offer 44.80 crore equity shares, or 16.70 per cent of its total equity of Re one each.
       
GSPC will utilise Rs 1,280 crore for developing the Deen Dayal West field in the Krishna-Godavari basin while another Rs 1,220 crore will be utilised towards pre-payment of loans and the remaining Rs 566 crore for exploration and development in 2011, Ray said.
       
GSPC is the flagship concern of the GSPC Group involved in exploration and production of oil and gas.