BG hires CRISIL for gas demand study

Vol 9, PW 22 (23 Feb 06) News in Brief

British Gas has hired CRISIL to carry out a gas demand study in the three southern cities of Hyderabad, Bangalore and Chennai.

BG wants to use any gas produced from three ONGC deepwater blocks in the Krishna Godavari basin where it is farming-in as a supply source for city gas distribution networks in the three cities. On 20th February, ONGC directors were to approve the draft farm-out agreements but the item was not listed because director offshore DK Pande was overseas.

ONGC directors are expected to approve the draft at their next meeting on 3rd March. Once signed, ONGC can start transferring (mainly well log) data to BG.

PSCs are likely to be signed in April May following ministry approval. The work programme is being drawn up so that exploration can begin without delay once approvals are in.

BG wants to farm-in 50% into each block.