After K-G basin, GSPC eyes Saurashtra-Kutch region

After making a mark on the national scene with its K-G Basin discovery three years back, Gujarat State Petroleum Corporation (GSPC) has now set its eyes on the home turf.

Riding high on its performance during the past couple of years, the state-owned company has sought rights from the Centre to carry out E&P (exploration and production) activities in the Saurashtra-Kutch region in Gujarat on a nomination basis. Experts say there is immense potential for onshore and offshore exploration in the area.

The state government has communicated to the Centre requesting that the company be given rights for the region, which, it believes, has potential for substantial hydrocarbon reserves. Moreover, there are hardly any companies interested in the region.

In a recent letter to the Union Ministry of Petroleum and Gas, GSPC has demanded that blocks for exploration should be allocated on a nomination basis.

The letter says:"In the exploration activities so far carried out by various national and international companies like GSPC, Niko, Cairn, Oilex, ONGC, among others, it has been proved beyond doubt that there is presence of prolific hydrocarbon reserves in the Cambay basin. However, to the surprise of the state government, huge areas of Saurashtra and Kutch have not been included in the NELP (New Exploration Licensing Policy) round under the pretext that these regions are devoid of potential hydrocarbon reserves."

A senior government official told Business Standard that the request has been forwarded as other national and international players are not interested in these regions for exploration.

"We have requested the Centre to allot these blocks to GSPC on nomination basis, so that huge hydrocarbon resources in these regions can be explored and produced in the best interest of the nation," he said.

According to him, various reports suggest there is a huge potential in these regions.