Petrol Stop - GSPC-led consortium strikes gas in Cambay

GSPC-led consortium strikes gas in Cambay

Monday, 06 September 2010

07 Sept 2010;timesofindia.indiatimes.com:AHMEDABAD: State-owned Gujarat State Petroleum Corporation (GSPC)-led consortium has made a huge natural gas discovery in the Cambay basin. Industry estimates suggest the total resource base in the basin may be in the region of 20-30 trillion cubic feet (tcf), almost equivalent to that of Reliance Industries' fields in KG-D6. However, recoverable reserves may be much lower as the reservoir is tight with low permeability. GSPC holds 55% interest in the Cambay field, while Australia's Oilex Ltd holds 45%. Oilex Ltd on Monday said the natural gas discovery in Gujarat may hold over 1.5 tcf of recoverable reserves. The field was awarded to GSPC and Canada's Niko Resources in the pre-new exploration licensing policy ( NELP) rounds in the 1990s and Oilex stepped in after Nikos exit. One reason why GSPC is underplaying the find is due to the possibility of low recovery. A senior state government official told TOI that GSPC is still examining how much of the gas is recoverable. In 2005, GSPC had announced that it had struck 20 tcf gas in the KG basin. But, the Directorate General of Hydrocarbons contested the claim, and has till date ratified a gas find of just over 2 tcf. However, analysts say Cambay is fast turning out to be Gujarat's KG basin though KG-D6 fields have a higher recovery factor with almost 12tcf of gas likely to be produced over life.