GeoGlobal to Sell Four Indian Hydrocarbon Blocks

Canada’s GeoGlobal Resources Inc. is planning to sell its stake in four Indian hydrocarbon blocks to Canada’s Fire Creek Resources Ltd, Mint newspaper reported Monday.

The transaction with Fire Creek Resources, which includes the blocks in Tarapur, Ankleshwar, Sanand-Maroli and Mehsana in Gujarat, is worth about $50 million. Gujarat State Petroleum Corp. Ltd (GSPC) is a partner or operator in all these blocks where the exploration activity has been completed.

GeoGlobal has 10 production-sharing contracts in India.

The report said that the deal with Fire Creek does not include the Deendayal block in KG basin in Andhra Pradesh, which is at the centre of a long-standing dispute between GSPC and GeoGlobal.

In the Deendayal block, about eight small and big discoveries have been made so far. The Directorate General of Hydrocarbons has certified that DD-West field in the block has recoverable reserves of about 2 trillion cu. ft of gas. GSPC aims to start production from this field from mid 2013, an extension of at least two years.