GSPC well mistake

Vol 15, PW 20 (19 Apr 12) News in Brief
     

GSPC is ruing the day it ‘mistakenly’ drilled a well at a neighbouring block instead of at its own block CB-ON/2 (Tarapur) in Gujarat, as it might have to forego ‘cost recovery’ to the tune of Rs10.54cr ($2m).

Both GSPC, which drilled well TS-8, and Hyderabad-based Heramec, which operates the North Kathana Field where the well was mistakenly drilled, are worrying about who will foot the bill. DGH officials told GSPC in February that cost recovery of TS-8 will not be allowed either under the North Kathana or the Tarapur PSCs.

“The DGH is sorting this out,” says a Gandhinagar source. “But we hear it is not ‘regularising’ the well.

” In March, 2008, GSPC handed over the well and its cost to Heramec, after drilling it between June and August 2007. GSPC (80% and operator) shares CB-ON/2 with GeoGlobal Resources (20%).

Heramec (30%) operates North Kathana with GSPC (70%). “TS-8 was drilled at the wrong place because of ambiguity in the ‘geodetic projection system’,” says GSPC, wistfully.