The Directorate General of Hydrocarbons has approved Gujarat State Petroleum Corporation’s field development plan for 2 trillion cubic feet for the KG-8 Deendayal West field in the Krishna Godavari Basin off the coast of Andhra Pradesh.
The formal announcement was made by Mr VK Sibal Director General of Hydrocarbons in Gandhinagar, after his meeting with GSPC’s board of directors. Mr Sibal said that “Based on the development plan submitted by GSPC on the basis of exploration work and the geological model analysed by various agencies, we have approved approximately 2 tcf of reserves in KG8in Deendayal-West of K G Basin.”
The move is widely expected to pave the way for the company’s much-awaited public offer. GSPC had been aiming to hit the capital markets last year, but the economic slowdown put the company’s plans on the backburner.
A senior government official said that “We are aiming to raise anywhere between USD 1 billion and USD 1.5 billion by the end of this financial year. The DGH nod for developing 2 tcf will allow us to carry on the necessary valuations for the company.”
Company sources said that GSPC plans to invest USD 1.6 billion in the development of its offshore Deendayal West field, so that it can produce about 10-12 million metric standard cubic meters a day of gas by the end of 2011.
The Deendayal gas field was discovered in June 2005 in the KG/OSN/2001/3 block and awarded to the GSPC consortium under the third round of New Exploration Licensing Policy. It covers an area of about 125 sq km. The discovery was made in the southern part of KG block, which is divided into three fault blocks DDWest, DD North and DD East.
Mr D JPandian MD of GSPC said that “The present development plan proposes to develop DDWest, covering 24 square kilometer. The base case gas reserve in DDWest is estimated to be 3 tcf. The plan envisages a production of approximately 5.7 mmscmd to 8.6 mmscmd of natural gas from 15 production wells located on an offshore well-head platform at the KG 8 discovery location.”
The state owned GSPC plans to spend approximately USD 1.6 billion over two years for the development of the Deendayal-West field. Mr S Jagadeesan Gujarat state Secretary (Energy & Petrochemicals) said that “GSPC will tie up with many expert agencies which will help it in developing the high pressure-high temperature gas reservoir. The Krishna Godavari blocks spread across 1,850 sq km, will help in producing the required quantity of gas not only for Gujarat but for the entire nation too.”
(Sourced from www.steelguru.com)
Monday, September 21, 2009
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