First GSPC deepwater well pushed back to February

Vol 7, PW 18 (19 Nov 03) Exploration & Production

Gujarat Petroleum has pushed back first drilling at its deepwater KG-OSN-2001/3 block in the Krishna Godavari offshore by a month as it waits for the results of a 3D survey carried out by PGS.

Originally scheduled for January, the first exploration well will now be drilled in February. The schedule has been delayed by almost a month because seismic data processing is taking longer than expected, reveals a source.

Reservoir consultants DeGolyer & MacNaughton are interpreting the 3D data and should submit their report with a new estimate of in-place reserves only by February next year. KG-OSN-2001/3 sits in water depths of up to 400 metres and is located next to Reliances gas find at KG-DWN-98/3.

Fevered speculation about the blocks prospectivity has prompted ONGC, British Gas and Reliance to separately approach GSPCs partner in the block GeoGlobal Resources of Canada to part with its 10% stake. ONGC and BG have approached GeoGlobals promoter JP Roy to sell his 10% stake in the block, a source tells PETROWATCH.

Reliance has also expressed interest, but only informally. Local sources deny that GSPC is trying to hype expectations about the prospectivity of KG-OSN-2001/3: Why do you think the big boys like ONGC, BG or Reliance are interested in a mere 10% in this block Ask for more details, however, and all you get is a small twinkle in the eyes and a refusal to name numbers.

GSPC has already floated a tender for a standard 6-leg jack-up rig. On 6th November, GSPC finalised drilling pre-qualifiers with several companies, including Transocean, Atwood Oceanic, Pride Foramer, Jindal Drilling, Delma Energy, ENSCO, Aban Loyd and Diamond Offshore.

In the initial phase, the company plans to drill four exploratory wells to 4,000 metres. In December Fugro Singapore will start geo-technical and soil investigations, says a source.

KG-OSN-2001/3 was awarded to GSPC under NELP-III against bids from Reliance and ONGC.