India's GSPC Starts Process to Sell Interest in Cambay PSC

Australia’s Oilex September 27 announced that Gujarat State Petroleum Corporation (GSPC) has commenced its formal sale process for its 55% participating interest in the Cambay production sharing contract in India.

Earlier this month, Oilex announced that it had reached a settlement to resolve the ongoing Cambay PSC dispute whereby GSPC will complete a sale process for its interest in Cambay PSC.  “Pursuant to the settlement, the event of default and event of withdrawal declared by Oilex with regard to the Cambay field joint operating agreement have been withdrawn and the arbitration proceedings, which had been lodged by GSPC with Singapore International Arbitration Commission, have been terminated,” Oilex said.

Furthermore, GSPC has also undertaken to remove the stay order granted in the High Court of Gujarat which is anticipated to be completed in October 2019.  The commencement of the sale process comes following the company's expansion into the Cooper Basin and, pending completion of the transaction, the East Irish Sea, Oilex said.

"The process which will facilitate the recommencement of an active work programme at Cambay is now well underway.  Considering the sale process, we believe we are approaching an exciting turning point with strong interest in the large gas resource at Cambay by a number of technically and financially capable companies," Oilex managing director, Joe Salomon, said.

Oilex holds a first right of refusal where GSPC disposes of its 55% interest in the Cambay PSC.