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Indian JV resolves dispute

Oilex and Gujarat State Petroleum Corporation have been in dispute since at least May 2018

Joint venture partners Oilex and Gujarat State Petroleum Corporation have resolved a long-running dispute over the onshore Cambay field in Gujarat, India.

Oilex said itself and GSPC have agreed that GSPC’s 55% participating interest in the Cambay production sharing contract will be included in a sale process of many of GSPC's Indian oil and gas assets.

Oilex said GSPC will work hard to complete the sale process within 90 days from about 24 September 2019.

Oilex said it holds a first right of refusal where GSPC disposes of its 55% interest in the Cambay PSC.

An event of default declared by Oilex against GSPC has been withdrawn, and GSPC will formally terminate arbitration proceedings lodged with the Singapore International Arbitration Centre and remove the stay order granted in the High Court of Gujarat.

The dispute has prevented Oilex and GSPC from proceeding with an active work programme, and in the previous quarter gas production was shut in.

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