Oilex, GSPC Line up Buyer for Indian Field

Australia’s Oilex and India’s Gujarat State Petroleum (GSPC) have lined up a buyer for their interests in the Bhandut production-sharing contract (PSC) in the western Indian state of Gujarat.

Oilex announced on January 28 it had accepted an offer for its 40% operating stake in the PSC from India’s Kiri and Company Logistics, which has agreed to pay $140,000. The Sydney-listed explorer added that GSPC had selected Kiri as the preferred bidder for its 60% interest as well.

Oilex’s deal is conditional on GSPC completing its divestment on or before March 31 2020.

The Bhandut field began producing small quantities of oil in the late 1980s. Oilex entered the project in 2007, launching a redevelopment plan that lifted its oil output and initiated gas production in 2016. The field is currently shut in, according to Oilex.