The Hindu Business Line : GSPC tastes success in KG-8 well appraisal drilling

Kolkata, Sept. 6 Gujarat State Petroleum Corporation (GSPC) today claimed success in appraisal drilling for KG-8 gas discovery in the KG-OSN-2001/3 block.

“The drilling of the first appraisal well proved to be a great success,” the Managing Director, Mr D.J. Pandian, told Business Line.

The company may approach the Directorate-General of Hydrocarbons (DGH) with a development plan for KG-8 once the ongoing tests are completed within one-and-a-half months, without any further appraisal drilling.

According to Mr Pandian, testing of the well has registered a flow rate of 12 million cubic ft a day at the bottom-most zone.

Testing of three more zones located upwards are yet be completed.

“The test proves that we have touched the sweetest spot at the bottom. We are confident that once all the zones are tested – expectedly in one-and-a-half months – the well will record higher flow rate from multiple locations,” he said.

Earlier this year, DGH had asked GSPC to initiate appraisal drilling at a maximum of three wells as a pre-condition for development of the find.

According to the company, the success of the appraisal drilling may lead to increase in reserve size from the DGH-estimated 1.38 trillion cubic feet.

KG-8 is one of the discoveries made by GSPC in the prolific KG-OSN-2001/3 block.

The company is running parallel exploration drilling activity in the block.

It has so far struck gas in four locations – KG-1, KG11, KG-8 and KG-16.

The last one was discovered last month.

The success in appraisal drilling may also help GSPC in firming up plans for monetising the asset as well as offloading of stake in the block to a foreign partner.

Pipeline plan pending clearance

The Centre today said that the proposal by Krishna Godavari Gas Network Ltd (KGGNL) to set up a 2,000-km transmission and distribution pipeline network in Andhra Pradesh is pending clearance till the DGH certifies the production plan at GSPC’s KG find.

KGGNL is a joint venture between GSPC and the Andhra Pradesh Government.

In a written reply in the Lok Sabha, the Union Minister of State for Petroleum and Natural Gas, Mr Dinsha Patel, said: “As production profile from GSPC’s fields has not been certified by the DGH, it has been decided to consider the issue of authorisation to KGGNL after it is done.”

Mr Patel clarified that gas sourcing tie-up with a producer, whose production profile is duly certified by the upstream regulator, was a policy pre-condition for granting authorisation for laying such pipeline network.

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