GAIL gives up on Rajasthan block

Vol 16, PW 23 (13 Jun 13) News in Brief

DGH officials don’t know it yet but GAIL is preparing to relinquish its 4613-sq km NELP-VI onland block RJ-ONN-2004/1 in Rajasthan, west of Cairn India’s Mangala oilfield.

GAIL became an upstream operator when it won this block and has drilled five of six committed exploration wells. The fifth, completed on May 30, was dry.

"We won’t be drilling a sixth well," confirms GAIL. “Already we have spent more than Rs250cr ($43m) at this block and we don't want to spend more.

” At the last Operating Committee (OC) meeting in May partners decided to relinquish the block if the fifth well was dry, which it was. Most likely because the DGH refused a GAIL request to drill the fifth well near the promising fourth well, where almost a barrel of oil was seen seeping to surface.

GAIL and GSPC each hold 22.225% at RJ-ONN-2004/1; HPCL holds 22.22%; BPCL, Hallworthy Shipping and Nitin Fire Protection Systems each hold 11.11%.