JPL signs contracts with Georgia for exploration of oil and gas

NEW DELHI: Jindal Petroleum (JPL), a subsidiary of Jindal Steel & Power (JSPL), has signed four production sharing contracts with the government of the Democratic Republic of Georgia for exploration and production of four blocks of oil and gas.

JPL will invest $150 million in phases in the four blocks. While in the three blocks JPL has 85% stake, Georgia-based Ensearch Petroleum, which is into exploration and production of oil and gas, will hold 15% stake. The Indian firm will, however, own 100% share in the fourth block.

"The move will help in the economic and infrastructure development of the region and will provide gainful direct and indirect employment to the locals," said JPL chairman Naveen Jindal in a statement.

JSPL, which so far had interests in steel, power and mining, has also acquired oil and gas blocks in Bolivia, Peru and India. The exploration work on the blocks blocks acquired in Peru is expected to commence in the next few months.

Following exploration, a detailed study would be conducted on the region and after an year drilling work would begin.