India’s State-run Gujarat State Petroleum Corporation (GSPC) has informed that it would invest US$ 1 billion in bringing to production its eastern offshore Krishna Godavari basin gas field by 2011 and may go for an initial public offering to garner funds for its gas fields development.

Yesterday, GSPC has made the discovery in Krishna Godavari basin shallow water block KG-22. The company is planning to invest about Rs 4,000 crore in developing Krishna Godavari basin gas fields.

GSPC is the operator and holds an 80% stake in the block, awarded for exploration to GSPC along with its partners Jubilant Enpro and Canada's GeoGlobal Resource in 2003. The company had won the block in the third round of auction under the New Exploration Licensing Policy (NELP).

Apart from this, it is reported that GSPC is also in talks with Adani Group and Essar Oil to jointly set up a five-million tonne a year LNG import terminal at Mundra port in the Gujarat.       
 
Under the proposed deal, GSPC may hold 50 per cent stake while Adani will take 20-25 per cent stake in it. However, the company did not clarify that which one held the rest 25% stake.