GSPC strikes gas in Andhra

Gujarat State Petroleum Corporation (GSPC),a Gujarat government owned company,has made huge discovery of gas in the KG 21 well located on the western side of Deendayal West block at Krishna Godavari Basin off Ahdhra Pradesh coast,official sources said.

Gujarat State Petroleum Corporation (GSPC),a Gujarat government owned company,has made huge discovery of gas in the KG 21 well located on the western side of Deendayal West block at Krishna Godavari Basin off Ahdhra Pradesh coast,official sources said.

We have discovered gas in the KG 21 well at 5,656 metre depth. An 800 metre gas column was encountered during the drilling operation, said a senior official.

This is for the first time that gas was struck at the lowest portion of the reservoir,he said.

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As per the initial estimate,this well could produce more than 100 million metre standard cubic feet gas per day.

However,it is subject to approval by the Director General of Hydrocarbons (DGH),sources said.

The Director General of Hydrocarbons (DGH) has already commercially certified a gas discovery of 1.26 trillion cubic feet (TCF) in KG 22 well by Gujarat State Petroleum Corporation (GSPC) in the Krishna-Godavari basin.

GSPC had claimed a commercial potential of 5.6 TCF before the DGH,but the DGH has certified a minimum discovery of 1.26 TCF,which is subject to upward revision on a more detailed appraisal.

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However,if GSPC’s claimed figure of 5.6 TCF is finally confirmed,KG-8,15 and 28 together would be worth USD 28 billion (Rs 1.40 lakh crore).

GSPC has so far invested more than USD 800 million in the KG based project and it plans to invest another USD 1.5 billion in exploration and bringing the find to Gujarat,sources added.

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