GSPC oil, gas reserves estimated at Rs1.74 Lakh crore

The state-owned energy giant, Gujarat State Petroleum Corporation Ltd (GSPC), is estimated to have reserves of gas and oil worth Rs1.74 lakh crore.

The draft red-herring prospectus (DRHP) of its forthcoming IPO states that the company has an estimated reserve of 4,36,800 crore cubic feet of gas and 9.58 crore barrels of oil in its fields.

According to the DRHP, the best estimate of its gas reserves is 4,36,800 crore cubic feet of gas in the KG basin as well as in other fields. The estimated gas reserves - at current market prices of around $4 per million standard cubic feet - are worth around $30.57 billion (around Rs1.39 lakh crore).

The oil reserves, estimated at around 9.58 crore barrels, are worth $7.76 billion (around Rs35,000 crore) at current market prices.

The company's proven reserves, however, stand at around 14% of the estimated reserves for both oil and gas. As of September 30, 2009, the proven gas reserves of the company stood at 65,300 crore cubic feet, which is 14% of its estimated reserves. The worth of the proven gas reserves stands at around Rs20,800 crore. Similarly, the proven oil reserves are pegged at 13% (or 1.21 crore barrels) of its total estimated reserves. The worth of the proven reserves is around Rs4,400 crore.

Of the company's total estimated energy reserves worth Rs1.74 lakh crore, the proven energy resources are worth around Rs25,200 crore. Industry experts, however, say the estimated resources may not necessarily convert into production.