The Hindu Business Line : Gujarat State Petro expecting satellite oil reserve in KG block

Snapshot
The company already proposed development of KG-OS well with an in-place proven reserve of 1.38 tcf.
Directorate-General of Hydrocarbons has already approved an appraisal-drilling plan based on the company's proposal.

Kolkata June 15 Gujarat State Petroleum Corporation (GSPC) has encountered early signs of possible existence of a satellite oilfield in the North of its existing gas find (in KG-OS well) in the Krishna-Godavari basin block.

"We have recently commenced exploratory drilling in the Northern part of the KG-OSN-2001/3 block. It is a new area undertaken for drilling. The data available so far indicates possible existence of a satellite oil reserve," a senior company official said. The company has pressed `Deep Driller' rig for carrying out drilling in this area.

On development of the gas find, the official said as part of their phased exploration and development plan, the company had already proposed development of KG-OS well with an in-place proven reserve of 1.38 trillion cubic feet (tcf). The well was located on the Western side of the block.

Based on the company's proposal the Directorate-General of Hydrocarbons (DGH) has already approved an appraisal-drilling plan.

"The geological and geophysical model developed on the basis of drilling activities (in the Western part) and seismic surveys point out that the reserve struck at KG-OS well extends to Eastern part of the block. We are confident that the reserve is more prolific in the Eastern part. We are expecting to commence drilling activity here in August-September," the official said.

On whether the final reserve in the block will fall short of its initial announcement of 20 tcf, the official said the company stands by its claim.

"There is little doubt that we have struck a rich reserve. However, out of 75 square km area we have so far drilled in merely 15 square km up to water depth of 50-60 metre through the available rigs Saipem's Perro Negro 3 and Atwood Beacon. The real action will begin as soon as we will start drilling the Eastern part of the block at an average water depth of 100 metres," he said. GSPC has already awarded a $250-million contract to Essar Oilfield Services for carrying out drilling in this region. The latter will join the drilling campaign with Essar Wildcat semi submersible rig in July. Drilling is expected to begin in August-September.

Meanwhile, the sixth exploratory well in the Western part of the block has encountered very high pressure. "We have prevented the blow-out and is now side tracking the well to reach the targeted depth," the official said.

GSPC holds 80 per cent operating interest in the shallow water block.