In September 2009, the Directorate General of Hydrocarbons (DGH) approved Gujarat State Petroleum Corporation’s (GSPC) field development plan for 2 trillion cubic feet (tcf) for the KG-8 Deendayal-West field in the Krishna-Godavari basin (KG basin). This development plan submitted by GSPC was on the basis of exploration work and the geological model analysed by various agencies. This plan proposes to develop 24 sq km comprising the DDWest block.
GSPC plans to invest $1.6 billion in the development of this field, which would enable it to produce about 10-12 million metric standard cubic metres a day (mmscmd) of gas by the end of year 2011. GSPC will tie up with many expert agencies which will aid it in developing the high pressure, high temperature gas reservoir.
When production commences, the field is expected to have a daily gas output of Rs 10 crore for a period of 30 years.
The state-owned Gujarat State Petroleum Corporation (GSPC) submitted a pre-feasibility report in June 2009 and acquired environmental clearance for 16 additional wells to be drilled in its Deendayal gas field in the Krishna-Godavari (KG) basin based on that. These 16 wells would be drilled in the Block KG-OSN-2001/3 and received clearance from the Environment and Forests Ministry.
The KG blocks already drilled by GSPC in the KG basin are spread over 1,850 sq kms of area. The firm already has 15 wells drilled in the KG basin in the water depths of 20 to 170 metres. Of these, 11 are discovery wells, 3 have no gas flow so far and 1 is yet to be tested. GSPC is preparing to drill additional wells up to a depth of 3,000 metres. The waste water generated would be treated and recycled for captive use.
On 17th June 2005, GSPC discovered India’s largest gas reserve in its KG # 8 well. Estimated at 20 TCF and worth over Rs. 2 lakh crores, it was expected to double the country’s gas production.
A year later, on 2nd June 2006, GSPC hit headlines again with a new discovery in another well in the KG basin. For the first time, GSPC struck both oil and gas in the very same well. This new discovery is expected to yield 4.8 million standard cubic feet of gas and 862 barrels of oil per day. In this well, named KG # 17, GSPC struck hydrocarbons at a comparatively lesser depth and at lower temperatures than in its earlier famous find. The higher quality of gas would also enable LPG production that would be of considerable monetary worth in the global markets.
This amazing discovery and GSPC’s ability to convert it into clean, cheap and abundant fuel is potent with the possibility of making India a force to reckon with in the Asian petrochemical market.
GSPC’s Origin & Major Discoveries
Gujarat State Petroleum Corporation (GSPC) is the flagship concern of the GSPC Group. The Rs. 3900 crore company is involved in exploration and production of hydrocarbons in India and abroad.
In 1994-95, GSPC acquired several oil and gas fields in the first and second rounds of bidding introduced by the Government of India. It was also among the first companies of the country to participate in the NELP bidding process and acquire exploration blocks across the country.
In 2005, GSPC made one of India’s largest gas discoveries in the KG basin. Among other considerable accomplishments, GSPC stands out as the builder of the nation’s only land-based drilling platform.
In little over a decade, the company has grown from a small-time operator in Gujarat’s oil fields to a comprehensive hydrocarbon E & P company with an impressive national and international portfolio.