GSPC’s KG-8 field plan okayed

The Directorate General of Hydrocarbons has approved state-owned Gujarat State Petroleum Corporation’s development Plan for KG-8 field in Deendayal west field in the Krishna-Godavari basin, V K Sibal, head of the country’s oil and gas regulator, said.
Sibal was here to meet the directors of GSPC to discuss the KG-8 plans.

“Based on the development plan submitted by GSPC on the basis of exploration work and the geological model analysed by various agencies, we have approved approximately 2 tcf of reserves in KG-8 in Deendayal-west of KG basin,” Sibal said.

GSPC had submitted the development plan in June this year for the regulator’s approval.
The official said GSPC will tie up with many expert agencies in the near future which will help the company develop the high pressure, high temperature gas reservoir.

“The present development plan proposes to develop DD-West covering 24 sq km. The base case gas reserve in DD-West is estimated to be 3 tcf. The plan envisages a production of approximately 5.7-8.6 mmscmd from 15 production wells located on an offshore well-head platform at the KG-8 discovery location,” said D J Pandian, managing director, GSPC.

GSPC had found the KG-8 reserve in 2005. “Within two years, we have completed all the work and the field development plan was submitted to the DGH and the ministry of petroleum and natural gas. Now that DGH has approved plan, production is expected to commence by end 2011,” Pandian said.

The corporation plans to spend approximately $1.6 bln over two years for the development of Deendayal-West field, Pandian said. Thus far, it has spent around Rs 4,000 crore and plans to spend another Rs 8,000 crore for the development of Deendayal gas field, he said.