GSPC hits big gas at KG basin yet again

  • 16/07/2008

  • Economic Times (New Delhi)

GUJARAT State Petroleum Corporation has discovered another gas reserve in the hydrocarbon-rich Krishna Godavari (KG) basin, on the eastern coast. The company, however, is very tight lipped about the size of the discovery. The gas discovery was made in the new well of deepwater block of KG 22. The company recorded gas flow at the rate of 27.3 million cubic feet per day through a choke of 28/64 inches. GSPC managing director D J Pandian told ET, "We have again discovered gas. The flow rate is good. The size of the discovery could only be ascertained after the testing results.' GSPC's discovery has also been validated by the director general of Hydrocarbons, V K Sibal. "They (GSPC) have informed us about the discovery. It is a gas discovery and the reservoir's quality seems to be good,' said Mr Sibal. Gujarat chief minister Narendra Modi is learnt to be in Andhra Pradesh to visit the project site and an announcement is likely to made on Thursday, sources said. An analyst working with an international firm said, "The discovery seems big considering the gas flow rate. It may be bigger than it's earlier discovery of 2005. This proves the potential of substantial gas reserves in the KG basin as RIL, ONGC and GSPC all discovered gas on India's east coast.' The company is in process of submitting a development plan with the DGH for production up to 6 trillion cubic feet (tcf) of gas from its earlier discovery in the Deendayal block. The company has also emerged as provisional winner of another 11 blocks in the recently-concluded seventh round of New Exploration Licensing Policy (NELP).