Following a study of reserves by the Dallas, US-based consultant Degolyer & McNaughton, it has been established that the Hazira gas field near Surat in Gujarat has approximately 6 billion cubic metres more of reserves than what was estimated in the preliminary stage of assessment in September 2001.
The increased reserve base of was found mainly because of special processing of three-dimensional seismic data and use of latest technology for applying inversion methodology that has resulted into better understanding of sand geometry and its extent over the Hazira structure.
D J Pandian, managing director of Gujarat State Petroleum Corporation Ltd (GSPCL), said the exploitation of offshore gas will result into increased production of 4 to 5 million cubic metres/day. "The additional gas production will help in catering to the increasing demand of the industries in the Gujarat," he said.
"The Hazira gas field has been under development since 1995 after Gujarat State Petroleum Corporation Ltd (GSPCL) and Niko Resources Ltd., Canada (Niko) signed the 'Production Sharing Contract' (PSC) with Government of India in 1994.
"Till date, 19 wells have been drilled in Hazira gas field resulting a daily production of over 2 million cubic meter day of gas and establishment of significant reserve base." he added.
A meeting of officials from GSPCL, Niko Resources Ltd (Niko), Canada, directorate general of hydrocarbons (DGH), New Delhi and Degolyer & McNaughton (D&M), Dallas, US, officials was held recently at D&M's Dallas office in US with the to discuss and finalise reserve report on Hazira gas field prepared by D&M, Dallas, US.
Following this finding, GSPC-Niko will drill an appraisal well with an estimated expenditure of approximately Rs 25 crore at an offshore location before the onset of the monsoon this year.
Upon finalisation of data and field development plan, GSPC-Niko will embark upon installing an offshore platform in the Hazira offshore area with an investment of over Rs 200 crore, and,
The company hopes to commission 8-10 wells offshore platform sometime in the year 2003.
Various versions of reserve estimates have been discussed between GSPCL-Niko and DGH over the last few years.
However, in order to have an independent opinion from a reputed international firm, Degolyer & McNaughton, Dallas was engaged to prepare reserve report and suggest strategy for exploitation of the Hazira gas field.
The extensive study carried out by D&M using all available data including 3D seismic revealed the estimate of the reserve based on which the future development plan for the field will be finalised.
GSPCL is the only state government-owned company in India, which has gone in to the production of oil and gas.
GSPCL is taking great strides in bridging energy gap by tapping huge reservoir of resources in oil and gas fields. It has several fields in operations in consortium with foreign and national companies.
During the year 2000-01 the Company has achieved turnover of Rs. 131.47 crore and made net profit (before tax) of Rs 45.20 crore on a share capital of Rs. 85.61 crore.
