Six blocks in Andhra basin to be offered for exploration
Friday, 15 November 2002, 20:30 IST
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NEW DELHI: India is to offer for exploration six more blocks in the Krishna-Godavari basin off the Andhra Pradesh coast where Reliance Industries made a seven trillion cubic feet gas discovery this year. "We will come out with the fourth round of bidding for oil and gas blocks under the New Exploration Licensing Policy (NELP) by the first week of April," Petroleum Minister Ram Naik told a seminar here Thursday. By the end of November, the petroleum ministry would be finalising the production-sharing contract for the 23 exploration blocks offered under the third round of NELP bids. "We have completed the evaluation of bids and submitted a note for consideration to the Cabinet for approval of awards," said Naik. Depending on imports for 70 percent of its hydrocarbon requirement, India has in the last few years stepped up exploration activities. It has so far awarded 47 blocks. Reliance Industries' gas strike has been in one of the blocks it was awarded in association with Niko Resources of Canada in the first round of NELP bids. The head of the directorate general of hydrocarbon, Avinash Chandra, said six blocks in the deep waters of Krishna-Godavari Basin would be among the next round of blocks that would be offered for bidding in April. Seismic survey has shown 80 new potential hydrocarbon bearing structures on the east coast. "We believe Krishna-Godavari, Mahanadi and north Tamil Nadu offshore hold great promise for hydrocarbon. Our 2D seismic surveys indicate this region holds reserves of the order of seven billion tonnes of oil and oil equivalent gas," said Chandra. Commenting on the gas discovery by the Reliance Industries and Niko Resources consortium, Naik said preliminary gas reserves estimate put it over seven trillion cubic feet. "This is comparable to gas reserves estimate of nine trillion cubic feet in Vasai field off the west coast near Mumbai." Gas from Vasai is currently being supplied to Gujarat, Madhya Pradesh, Rajasthan, Haryana, New Delhi and Uttar Pradesh. Energy major Cairn Energy of Britain has struck 1.2 trillion cubic feet of gas reserves in the Krishna Godavari basin while Niko Resources has made a significant gas discovery in inland block near Surat in Gujarat, said Naik. As Niko's discovery is an onland block at a shallow depth, it is expected to be comparatively a low cost gas. The discovery would increase gas availability in the western region, within a short period, Naik said. In addition to the oil and gas blocks, India is planning to offer another seven coal bed methane (CBM) blocks for exploration in April, said Naik. "I am told the directorate general of hydrocarbon has already carved out about seven new CBM blocks." According to estimates, the seven CBM blocks awarded in the first round of bids will yield around 10-12 million standard cubic meters of gas per day within four years. The recent oil and gas strikes by exploration companies have boosted India's optimism of better response to the next round of blocks to be offered for bidding in April.
Source: IANS
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