GSPC delays GNR plan for 4 wells in Gujarat
Sitting on a colossal debt mountain of Rs19,624cr ($2.95bn), GSPC is in no mood to spend money.
The cash-strapped state-owned company has forced its JV partner Gujarat Natural Resources (GNR), formerly Heramec, to postpone a Rs60cr ($9m) drilling programme to drill four wells at the Kanawara and North Kathana fields in Gujarat from early 2017 to July 2017. "GNR wants to begin drilling," says an industry source.
"But GSPC does not. It has no money." GNR wants to drill three wells at Kanawara to 1800 metres TD (K#11, K#12 and K#13) and one well at North Kathana to 2500 metres TD (NK#6).
Each well will cost Rs15cr ($2.25m) to drill. GSPC aside, GNR is also worried by the low oil price.
"Market conditions will hopefully get better by next year," we hear. "GNR want better prices before drilling." GNR invited EoIs in June 2015 for a rig and services but says it cannot award contracts until GSPC is ready to proceed because contractors can't be kept waiting.
At present Kanawara produces 200 b/d of oil and 45,000 cm/d of gas from nine wells: K#1, K#2, K#3, K#5, K#6, K#7, K#8, K#9 and K#10. Of this 35,000 cm/d goes to local factories while 10,000 cm/d is allocated to customers who have yet to begin taking supplies.
North Kathana is only producing 40 b/d from well NK#5.