Australia-based oil and gas explorer, producer and seller, Oilex, has offered to buy out the share of Gujarat State Petroleum Corp. Ltd (GSPC) in a Cambay oil and gas block after the Gujarat government’s company refused to pay its share of expenses.
Consequently, Oilex has halted work on the block. According to a report by Press Trust of India, GSPC refused to pay its 55 percent share of the US$38 million budget.
Oilex has proposed that GSPC either sell part of its stake in the project to Oilex so that work can proceed or Oilex will file a default notice against GSPC, in which case the company will lose its holding in the project. The other alternative, of course, is that the company pays its share.
Oilex owns 45 percent in the Cambay field in Gujarat and the US-based Energy Information Administration (EIA) estimates the Cambay Basin hold about 30 trillion cubic feet of gas and 2.7 billion barrels of oil.