Reliance to account for 1/3 of KG basin gas output by 2008

Ahmedabad, Oct 4 (UNI) The Krishna-Godavari basin has got huge potential to produce 100 to 120 mmscmd (million standard cubic meter per day) gas in the next three to four years, Director General of Hydrocarbons Mr V K Sibal said today.

Mr Sibal said of this, Reliance is expected to produce 40 mmscmd from June 2008. It will hence account for almost one-third of the total production.

Gujarat State Petroleum Corporation which is carrying out exploration in five wells, is sitting on a ''gold mine'' and can go into commercial production ''not before 2009''.

He, however, admitted the Directorate of Hydrocarbons (DGH) is yet to certify the oil and gas finds reported by the GSPC as, reserves. ''Conclusive testing is yet to be done,'' he said.

It will be done after the state-run firm submitted the development plan of KG15 well as well, he added.

He said the DGH, the regulator of the petroleum sector, has advised the GSPC to appoint a technical partner for the purpose.

The company had invited bids from oil majors Chevron Corp., BP Plc, BG Group and Italy's ENI, who had evinced interest in investing in GSPC's gas fields. ''We have shortlisted some companies by evaluating them on technical parameters,'' said Mr Pandian, Managing Director, GSPC.

About Reliance, Mr Sibal said while one of its well has been certified as reserve by the DGH, the other has not been certified as the company did not follow the information sharing procedures.

He commended GSPC's exploration efforts, saying it has successfully drilled 5000 metres in KG 15 well.

UNI MMG PM DKS KN2105