GSPC makes major gas find in KG basin

Gandhinagar, June 7 (UNI) Gujarat State Petroleum Corporation (GSPC), a State-owned company, today announced a major oil and gas find in Deen Dayal oilfield in KG basin, offshore Kakinada in East Godavari district of Andhra Pradesh.

While Gujarat Chief Minister Narendra Modi refused to give details on the possible size of gas finds, officials in the energy department said gas and oil finds in the second well of block KG-17 would be larger than the Reliance gas finds of 2002, if the first well discovery of 2005 is taken into account.

The first well of Deen Dayal oilfield was drilled last year, which has estimated gas reserves of around 20 TCF. The reserves have already been certified by concerned agencies.

Mr Modi told reporters, after the Cabinet meeting, that the second well drilled by GSPC struck oil and gas on June 2 this year with gas flow of 4.8 million standard cubic feet per day and oil bulk of 862 barrels per day. The state government proposes to commence commercial production by December, 2008.

The stock of gas and oil is expected to be spread in a wide area of 60 to 90 kms at a depth of around 3,500 metres.

The Chief Minister said they have already informed about the new gas find to Central Government and Directorate General of Hydrocarbon (DGH) will estimate about the reserves.

He said Prime Minister Manmohan Singh and Petroleum Minister Murli Deora have already congratulated about the major discovery.

He said the gas has rich content and the State Government proposes to set up a LPG extraction plant on the mainland. The LPG extraction plant may be set up in joint sector.

MORE UNI PB-MMG GK RA PM1815