The Hindu Business Line : GSPC postpones pre-bid meet for K-G partner

GSPC has postponed its pre-bid conference for inclusion of a strategic partner in K-G basin offshore block by approximately two weeks to October 23 and 24. The conference was previously scheduled between October 10 and 13.

Delay in holding the pre-bid conference may also lead to some delays in inviting the final bids, previously scheduled to be held latest by November 15, according to sources.

The move (postponement of pre-bid conference) is presumably aimed at generating adequate investors’ interest in the block (KG-OSN-2001/3) as GSPC is slated to have more data testifying the success of its appraisal drilling in the block, by the third week of this month. Following a recommendation from the Directorate Generation of Hydrocarbons (DGH), the Gujarat state PSU had drilled the appraisal well in August to justify the proposed development of KG-8 gas discovery in the offshore exploratory asset.

Accordingly on September 6, the company described the appraisal drilling as “a great success”.

The deepest pay zone tested a flow rate of 12 million standard cubic ft a day (mmscfd) as early as in the first week of September. There was some delay in testing the second zone, which recorded a flow of 7 mmscfd recently.

While the company now puts the third zone on test — which is expected to be over by the time GSPC convenes its pre-bid conference in London — decision is now pending whether it will go for another test in the well to further establish the richness of the reserve.

“The results of the third test in the appraisal well is due by the end of this month. However, we are now considering the possibility of holding another test,” a company source said, admitting that in the emerging situation there may be some “marginal delays” in inviting the final bid.

Since the detailed terms and conditions of the final bid are generally laid as per the feedback received in the pre-bid meeting and the interested companies need to take approvals from their respective boards for participating in the bidding process, there should be adequate time before the final bids are open, the source added.

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