After ONGC Deal, GSPC Eyeing Financial Restructuring
GSPC, after selling its KG gas block stake to ONGC for $1.2 billion is all set for a huge financial restructuring which will include trimming its stake in some businesses like portfolio readjustment and LNG stated its MD, J. N. Singh.
Presently burdened with Rs 20,000 crore debts, GSPC has gas transmission pipelines, a huge gas trading business as well as city gas business.
J. N. Singh stated in an interview that the company is presently undergoing a total financial restructuring exercise. The options available include few dilution of stake and few dilutions of equities.
He refused to go into the details and stated that the company is presently considering portfolio readjustments and financial reconstructions. He also added that, the entire process will take some time and they have also established an internal subcommittee of the board.
A fifty percent stake has already been offered by GSPC to IOC in the Rs 4,500 crore LNG import terminal setup in partnership with Adani Group. Mr. Singh also stated that divesting stake in other ventures is also an option they are considering.
Between the years 2006 to 2010, GSPC acquired eleven oil & gas blocks in different countries like Yemen, Australia, Indonesia and Egypt. However, ten of these overseas assets has already been surrendered and the company has also written off two thousand crore investment.
When asked whether GSPC is looking forward to end its foray in production and exploration overseas, Mr. Singh stated that in this business it is hard to say that it is ending now. He also stated that they will look for other opportunities but the approach will be more conservative than before.
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