The Gujarat government has proposed to pick up a 20 per cent stake in the gas discovery made by Gujarat State Petroleum Corporation (GSPC) in the Krishna-Godavri basin.

GSPC has an 80 per cent interest in the KG basin block and the remaining 20 per cent interest is shared by Jubilant Enpro and Geoglobal. GSPC is the operator in the block.

Even as the Gujarat government is eyeing a 20 per cent stake in the block, GSPC, which discovered gas in the KG basin in the middle of 2005, has offered a 20 per cent stake to a leading oil major against the development of the field. If both the deals happen, GSPC's stake could come down from the current 80 per cent to 40 per cent.

Several leading oil companies have expressed interest in the development of the KG basin gas field which includes Shell, ExxonMobil, British Petroleum, British Gas, ENI of Italy, Total of France and Anadarko. Many among these have already visited GSPC and explored possibility of gas production from the GSPC owned field.

GSPC has also appointed UBS as its financial consultant to prepare data for the proposed partners for the KG basin gas discovery. 

Also See:

GSPC find to go into production by 2007 (29-Jun-05)