• In 2008, DGH declared GSPC’s K-G venture as commercially viable’

    Taking on the Opposition’s corruption allegations in Gujarat State Petroleum Corporation Limited (GSPC)’s Krishna-Godavari (K-G) Block venture, Gujarat Energy Minister Saurabh Patel said that the previous UPA government and its officials had approved the commercial viability of the project as well as the Field Development Plan in 2009. “This itself shows that the UPA government and its Director General of Hydrocarbons (DGH) himself had accepted the success of GSPC. Hence, the investment of ?198.16 billion made by GSPC was not a wasteful spend as alleged by the Opposition, which wants to score political points falsely indicting GSPC and thereby Gujarat government,” said the Minister.

    Patel said that GSPC first focused on developing three discoveries of the DDW field in KG Block. In December 2008, the DGH had approved this project as commercially viable and going a step further, the DGH and the Ministry of Petroleum and Natural Gas had approved the FDP in November 2009, Patel stated adding that the company has entered into the production stage of the Field Development Plan. Challenging the Opposition charges on surrender settlement costs for surrendering the 37 blocks, Patel maintained that out of 65 blocks, GSPC did not succeed in 37 blocks. “GSPC spent ?29.92 billion for these surrendered blocks. But such cases are normal in the hydrocarbon sector. Central PSU ONGC had spent ?480 billion, while Oil India Limited (OIL) had spent around ?18 billion for such surrender settlement. Also, British Petroleum had to spend ?480 billion towards exploration cost settlement,” said Patel.

    Charges baseless

    The minister further mentioned that once the company begins commercial production, it will start getting revenues, hence the allegations of pending recovery of ?23.1943 billion from the joint venture partners Geo Global Resources and Jubilant have no truth in it, he said. “We plan to recover the dues of ?10.346 billion from Geo Global from its revenue share from the sale of gas. Similarly, Jubilant Offshore Drilling Pvt Ltd has paid ?14.2094 billion to GSPC so far. The remaining will be recovered from the company from its share of revenue from the sale of gas,” Patel informed. Ryan Getzlaf Authentic Jersey

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