GVK Power plans to join fuel hunt

GVK Power plans to join fuel hunt
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First Published: Fri, Nov 02 2007. 11 51 PM IST
Updated: Fri, Nov 02 2007. 11 51 PM IST
Mumbai: In an attempt to get direct control over fuel, infrastructure developing company GVK Power & Infrastructure Ltd plans to enter the oil and gas exploration sector, and may participate in the auction of oil blocks by the Union government.
Having three gas-based power plants, GVK currently has various plants producing power of 900MW and more than 2,000MW under various stages of development.
The Directorate General of Hydrocarbons, a technical body that reviews oil and gas exploration programmes of companies, is set to auction around 80-85 blocks under Nelp-7 in a couple of months. Nelp, or new exploration licensing policy, is the programme launched by the government to offer oil blocks to speed up the finding of oil and gas.
Reliance Industries Ltd, Oil and Natural Gas Corp. Ltd, Oil India Ltd, Exxon Mobil Corp., Chevron Corp. and ConocoPhillips Inc. also plan to participate in the Nelp-7 auctions.
“Oil exploration is definitely in our radar. But nothing has been finalized on that business as of now,” said G.V. Krishna Reddy, chairman and founder of GVK Industries Ltd.
Having invested more than Rs5,000 crore in infrastructure projects, the Hyderabad-based GVK group has a presence in power, roads, airports and urban infrastructure. It has on-hand projects in the pipeline of more than Rs12,000 crore.
A person familiar with the development, who does not want to be identified, said the group is initially looking at oil and gas drilling. “A team is working on the feasibility of the project. The company is in the process of finding an international partner for entering into this space. It is also examining the availability of oil rigs and other related infrastructure. We may bid for Nelp-7 as we are serious about this potential sector,” he added.
The International Energy Agency, in its world energy outlook, has estimated investment requirements of more than $8.2 trillion (Rs323 trillion) over the next two decades in order to bridge the demand-supply gap. This is substantially higher than its earlier forecast of $5.3 trillion.
Meanwhile, analysts expect oil and gas prices to remain firm in medium term, reflecting tight supplies.
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First Published: Fri, Nov 02 2007. 11 51 PM IST
More Topics: GVK Power | Oil Exploration | Power plants | RIL | Nelp |