Gujarat wants KG Basin gas to flow by Dec 2007

The Gujarat government has set December 2007 as deadline for Gujarat State Petroleum Corporation to produce gas from the Krishna Godavari basin.

The production target has also been set at 7 million cubic meters of gas by the state government. GSPC has discovered 20 trillion cubic feet of gas from well no 3 in block 8.

GSPC is currently working on proposals from seven multinationals interested in joining hands with the company in exploration and production of gas from the basin. According to sources, the company will soon finalise the name of a financial adviser and then proceed with the offer documents for the multinational oil majors.

Seven multinationals "" Shell, ExxonMobil, British Petroleum, British Gas, ENI of Italy, Total of France and Enadarko "" have been shortlisted by GSPC for equity stake and for technology partnership.

GSPC, which is the operator of the block KG-OSN-2001/03, owns 80 per cent of the block, and the remaining 20 per cent are equally shared by Geoglobal Resources-India (GGRI) and Jubilant Enpro.

Since partnerships with oil majors may take time to come about, GSPC is gearing up to go in for production, wherever possible, on its own. GSPC has 14 wells in the block and company is currently drilling a fifth well.

The rising prices of imported liquefied natural gas and closure of operation by Shell, one of the two LNG companies importing and re-gasifying LNG in the country, have compelled GSPC and the state government to change their plans a bit and act fast.

The state's gas requirement was increasing in leaps and bounds and the impact of the shortage was likely to be felt in two to three months, said sources. Gujarat-based companies and some more in the western corridor might be asked to prepare a contingency plan during the next few months, said sources.

For quickest possible production and transportation of gas from the east coast to the west coast, GSPC is considering swapping KG Basin gas with east-coast suppliers.

POWER FACTOR

The company will soon finalise the name of a financial adviser and then proceed with offer documents for multinational oil majors

Seven MNCs "" Shell, ExxonMobil, British Petroleum, British Gas, ENI of Italy, Total of France and Enadarko "" have been shortlisted for equity stake and for technology partnership

The production target has also been set at 7 million cubic meters of gas by the state government

GSPC, which is the operator of the block KG-OSN-2001/03, owns 80 per cent of the block, and the remaining 20 per cent are equally shared by Geoglobal Resources-India (GGRI) and Jubilant Enpro