Govt okays $1.6 bn FDP for GSPC's KG basin

The central government has approved $1.6-billion field development plan (FDP) for Gujarat State Petroluem Corporation's (GSPC) Deendayal west block in the Krishna-Godavari basin.

"The FDP was earlier approved by the regulator Director General of Hydrocarbon (DGH) and now the central government has also put its stamp of approval," the Principal Secretary of Energy and Petrochemicals J Pandian told PTI.

When asked about the initial public offer (IPO) plan of the state's energy conglomerate, Pandian said, "Since now the approvals for Deendayal block are in place, IPO should happen within six months."

It is learnt from the officials that the size of the IPO is likely to be between Rs 3,000-5,000 crore.

The DGH has so far certified two TCF (trillion-cubic- feet) gas reserves in four wells of the block where as 11 more wells are to be drilled.

Pandian, who was the managing director of GSPC since 2001, was last week transferred and posted as principal secretary, energy, in the state government.

According to GSPC officials, the company has so far invested around $1 billion in exploration activities in the block.