GSPC strikes gas in KG basin

Claims 6.3 tcf reserves in the well

NEW DELHI: Gujarat State Petroleum Corporation (GSPC) has reported a new 6.3 trillion cubic feet gas discovery in its eastern offshore Krishna Godavari basin discovery block KG-OSN-2001/3, home to the Deen Dayal gasfield.

GSPC on September 24 informed upstream regulator Directorate General of Hydrocarbons (DGH) of discovering multiple hydrocarbon zones in well KG-16.

“Consequent upon the completion of the test carried out in KG-16 well, which was witnessed by DGH representative, data has been analysed and we would like to confirm that the discovery in KG-16 is of potential commercial interest and merits appraisal,” the company wrote to DGH.

KG-16, the sixth exploratory well on block KG-OSN-2001/3, was spudded on December 30, 2006 and vertically drilled down to 5,372 metres.

GSPC has 80% interest in the block, while Jubilant Enpro Ltd and GeoGlobal Resources have 10% each.

DGH had estimated proven reserves in the 2004 Deen Dayal discovery at 1.38 tcf, while GSPC claims reserves in the block in excess of 20 tcf.

GSPC hopes to submit the final development plan for its KG basin by December 2007 and begin gas production around 2009-10. The company has moved the Atwood Beacon Rig, which was used to drill the KG-16 well, to a new exploratory well, the KG-31, situated in shallow waters of about 62.5 metres depth. The KG-31 well was spudded on September 18 and is intended to be drilled to 4,000 metres.