India approves Oilex's Bhandut stake sale
Sydney-listed Oilex on April 13 said it had received all necessary approvals from the government of India for the sale of its participating interest in the Bhandut production sharing contract (PSC) in Gujarat.
“Following the approval from the government of India, all conditions precedent to the sale of its participating interest in Bhandut have now been met with settlement of the US$0.29mn consideration from the buyer expected later this month,” the company said.
Oilex had accepted an offer from India’s Kiri and Company Logistics to acquire its interest in Bhandut in January last year. Oilex held a 40% interest in the Bhandut field in the western India state of Gujarat, with Gujarat government-owned GSPC holding the remaining.
The company will receive US$0.29mn in cash proceeds for the sale of its interest and transfer of operatorship rights to Kiri.
“While completion of this transaction has taken longer than anticipated, primarily due to the impact of Covid-19, a positive outcome has now been achieved,” Oilex’s managing director Joe Salomon said. “This sale provides Oilex with additional current and future cash which will be applied to the existing Cambay and East Irish Sea projects.”