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The slow progress in developing KG asset notwithstanding, Gujarat State Petroleum Corporation (GSPC) appears to have been moving fast in exploring opportunities abroad. The State Government run company may launch its first overseas exploratory drilling campaign at North Happy offshore block, on the Mediterranean Sea near Port Said in Egypt, in the first week of December.
According to sources, the $200 million (approximately Rs 1,000 crore) campaign for drilling of six deepwater wells is scheduled to be completed in 8-9 months. Anticipated as a gas block, first results from block are expected in January. GSPC holds 80 per cent operating interest in North Happy.
Rig contract
GSPC has already contracted Noble Paul Romano, a semi-submersible rig, to carry out the drilling. The rig is scheduled to be commissioned by end of this month. “Drilling is scheduled to start in the first week of December,” Mr M.Y. Farooqui, General Manager spearheading overseas operations from Cairo, confirmed to Business Line .
According to the concession agreement with the Arab Republic of Egypt, gas from the field will be used primarily to meet the rising local demand
South Diyur block
While Mr Farooqui refused to divulge further details, sources said that the Gandhinagar headquartered company is also aiming at launching a six-well onshore drilling campaign at South Diyur blocks in Egypt in April 2012.
The company is already in the advanced stage of acquiring the seismic data from the 38,000 sq.km block, located next to a recent onshore oil discovery by Shell.
The tender for appointing drilling contractor for South Diyur is already floated.
The contract is expected to be awarded end of next month. The total cost of the exploration is pegged at $60-70 million (Rs 300-350 crore)
More blocks
India based Alkor Petroo Ltd – now an IVRCL group company – holds 20 per cent participatory interest in both South Diyur and North Happy.
In addition, GSPC is in the process of launching 3-D seismic data acquisition programme in two more off-shore blocks on the Red Sea in Southern Egypt. GSPC holds 60 per cent operating interest in both the blocks while Gujarat-based Adani Group holds the residual participatory interest. Drilling operation is expected to begin in both the blocks in 2013.
The Egyptian Government is also expected to sign concession agreements for two more offshore blocks with a GSPC-led consortium in next couple of months.
While GSPC holds 50 per cent operating stake in both the blocks, HPCL and Oil India holds 25 per cent each.
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