Business Daily from THE HINDU group of publications
Sunday, Feb 11, 2007
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Business Daily from THE HINDU group of publications Sunday, Feb 11, 2007 ePaper |
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Corporate
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Announcements Industry & Economy - Petroleum GSPC may go solo for developing K-G basin block Pratim Ranjan Bose
In-depth details The company had previously shortlisted global E&P giants as prospective strategic partners in the project The discussions, however, did not made much headway as the foreign companies insisted on more data to confirm the `proven reserve' in the block It is open to appointing a global oilfield service company for development without any dilution of its interests
"We are confident of meeting the `internal target' of submitting first phase development plan by March 2007", the GSPC Managing Director, Mr D.J. Pandian, told Business Line. This is irrespective of the widespread speculation that the company may miss the target. GSPC has recently submitted a two-well appraisal drilling plan before the DGH and has set a target to produce 9-10 million metric standard cubic metre of gas per day by early 2009. Though Mr Pandian said that negotiations were on with prospective foreign strategic partners in Deendayal block, sources said that any such development was unlikely at this juncture. Parallel discussions were also on with global oilfield services companies for developing the project on contractual basis, he said.
Foreign partners
GSPC had previously shortlisted global E&P giants British Petroleum, British Gas Group, Chevron Corp and ENI of Italy as prospective strategic partners in the project. The discussions, however, did not made much headway as the foreign companies insisted on more data to confirm the `proven reserve' in the block. Admitting the development, a GSPC official said that the company was interested to rope in a "foreign strategic partner" to use the latter's expertise in exploring more oil and gas in the deepwater block as well as developing the same. The proposition has lost its charm as the foreign companies bargained for information, which can only be furnished after completion of the scheduled drilling programme. "We are now stressing on completing the 10 well exploratory drilling programme on our own within this fiscal and are open to appointing a global oilfield service company for development of the field without any dilution of GSPC's interests," the official added. GSPC holds 80 per cent operating stake in the block. Globally, oilfield services companies such as Schlumberger, Halliburton and others take up such projects. GSPC has, so far, drilled five wells. Oil and gas was discovered in two and testing result of the fifth well is awaited. Drilling of sixth and seventh wells are now on with the help of two deepwater drill ships Perro Negro 3 and Atwood Beacon. With the third rig expected to join the campaign in July, the pace of drilling will increase in the second half of 2007.
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