Dismissing speculations that BG India is on an exit mode, the company said it will focus more on imported gas business in its new avatar.
The company has been in the news for the past few months mainly because of its decision to exit hydrocarbon assets and its intent to sell its stake in Gujarat Gas Company Ltd (GCCL).
“We see potential in gas imports and upstream (exploration and production of oil and gas) business. The Indian basins still attract us,” said Mr Walter Simpson, President and Managing Director, BG India.
BG has been operating in India for more than 15 years now and understands the gas market well, he said, adding that dynamic gas market is fast changing here.
LNG terminals
Mr Simpson said he sees a significant growth in the re-gas capacity through expansion of existing liquefied natural gas terminals, commissioning of new terminals at Kochi and Ratnagiri in the near future and setting up of new terminals on Eastern and Western offshore over the next 4-5 years.
“These terminal facilities will need reliable liquefied natural gas supplies and we see multiple opportunities emerging for LNG supply as well as possible access to terminals and re-gas capacities,” he told Business Line
GCCL stake sale
On the company's move to sell 65.12 per cent stake in GGCL, India's largest private sector natural gas distribution company in terms of sales volume, he said this is part of the company's global restructuring strategy. So far, eight companies have shown interest and the process is under way with bids expected to be submitted on March 15.
“Let's see how it goes and we will inform the market when we have something to announce,” he said while declining to share further details.
PMT venture
The contract of Panna-Mukta-Tapti fields, which BG has in joint venture with Reliance Industries and ONGC, expires in 2019. Asked on BG's plans for the project, he said an extension of the current production sharing contract (valid till 2019) will be required for all parties to progress.
The joint venture continues to enhance recovery from the fields through incremental development of the existing fields through well intervention and infill drilling campaigns as well as new projects including water injection. The Panna water injection pre-feasibility evaluation report was submitted to the Government in September 2011 and follow-up discussions are in progress, he said.
Asked if BG was also looking at exiting Mahanagar Gas, its city gas business in Mumbai, Thane, and Navi Mumbai, while declining to make a comment on the forward plan, he said the company has good relations with GAIL, its partner in the venture, and will honour the joint venture agreement. In case BG decides to exit, GAIL will have the first right of refusal.