GSPC spuds 7th well at discovery block KG-OSN-2001/3

Vol 10, PW 20 (08 Feb 07) Exploration & Production
     

Gujarat State Petroleum has begun drilling its seventh exploration well at discovery block KG-OSN-2001/3 in the KG basin.

PETROWATCH learns well KG#28 was spud in 65 metres water depth on (Tuesday) 6th February by rig Perro Negro 3 and that drilling began a day later. Like wells KG#17 and KG#15 before it, well KG#28 is being drilled from the same location as discovery well KG#8, but is deviated some 1500 metres south west.

TD of 5700 metres should be reached in three months around mid-May. GSPC is drilling two wells in parallel on this block.

On 2nd January newly-arrived Atwood Beacon spud the sixth well KG#16 in 110 metres water depth about 5-km east of KG#8. This week Atwood Beacon had drilled to 2600 metres depth.

“Drilling has been very smooth,â€‌ says a source. “There have been no shows so far but we expect to see something around 3200 or 3300 metres.

â€‌ KG#16 is on a separate fault block from KG#8 and within GSPC expectations are high of another major discovery. TD of 5500 metres is likely to be reached in early April.

Separately, PETROWATCH learns GSPC has not set a fresh deadline for submission of final farm-in bids from British Gas, BP, Chevron and ENI for up to 30% stake, leading to speculation that GSPC or potential bidders (or both) have lost interest in the process. GSPC is irritated by bidders’ insistence that it should drill more wells before setting any future deadline.

“We want their technical expertise,â€‌ said a GSPC source. “They should come and share some risk with us instead of standing on the sidelines.

â€‌ Bidders, it seems, are disappointed by last month’s test results from KG#15. Of particular concern is GSPC’s unwillingness to use chokes larger than 28/64-inches for the Drill Stem Test.

“We told them to gradually increase the choke size,â€‌ says a bidder. “We want to know if any sand will be produced.

28/64-inch is not enough choke. We’ve been asking GSPC why they didn’t use bigger chokes.

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