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Adani Group, through its JV with Welspun Enterprises, has made its first strike in gas discovery in the Mumbai offshore basin.
Adani Welspun Exploration Ltd (AWEL), a joint venture between Adani Group and Welspun Enterprises Limited, on Monday announced its first-ever gas discovery in the NELP-VII block MB-OSN-2005/2. AWEL holds 100 per cent participative interest (PI) and is the operator of this block.
Spread across 714.6 sq km, the block is located in the Tapti-Daman Sector of Mumbai Offshore basin.
The pay zones and flow rates encountered have exceeded the company’s initial estimates, an official statement said here.
With the information gleaned from adjoining fields/areas, this discovery is of substantial significance for both the company and the nation.
Significant breakthrough
Speaking on the discovery, Sandeep Garg, MD, AWEL, said, “In addition to being value accretive for the company, this discovery could be a significant breakthrough for our nation, given India’s focus to nearly triple the share of natural gas in its energy mix by the end of this decade.”
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“The company is also an operator with 100 per cent PI of an adjacent Discovered Small Field B-9 Cluster in this prolific gas-bearing zone. The proximity of these two prospective Blocks will enable AWEL to synergise and optimise development of both the blocks,” he added.
A 65:35 joint venture between Adani Enterprises Limited and Welspun Natural Resources Pvt Ltd, AWEL was awarded the block under the New Exploration Licensing Policy VII bid round.
Early indications pointed to the occurrence of gas-bearing reservoirs within the sandstone reservoirs of the Mahuva and Daman formations, the statement said.
The drilling of the current well in March 2021 has confirmed the presence of substantial quantities of gas and condensate in the Block.
An Adani Group statement said that out of the three potential zones identified during drilling, two objects tested by Drill Stem Testing (DST) flowed substantial gas and condensate to the surface.
Object-I (3m), a clean sandstone reservoir, flowed 9.7 million standard cubic feet per day (mmscfd) of gas along with 378 barrels/day of condensate through a 28/64“ choke at a flowing tubing head pressure (FTHP) of 2659 psi. Object-II (15m), another thick clean sandstone reservoir, flowed 9.1 mmscfd of gas along with 443 barrels/day of condensate through a 28/64“ choke at a FTHP of 2566 psi.
AWEL holds key operated and non-operated assets in Mumbai Offshore & Gulf of Kutch in the Western Offshore basin.
Adani Enterprises shares traded negative in early trades on the BSE at ₹892.50, down 0.5 per cent. Welspun Enterprises lost over 1 per cent to trade at ₹120.40 on BSE Monday.
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