Baola gasfield's revival plan abandoned by Interlink

Vol 12, PW 17 (29 Jan 09) Midstream & Downstream
     

Gas customers will be disappointed that Gujarat-based Interlink Petroleum has delayed plans to revive the Baola gasfield as an alternative source to GSPC Gas and BG-owned Gujarat Gas.

In August last year Jit Sun - the local investment arm of Singapore-based Ezra Holdings that acquired a controlling stake in Interlink two months earlier – had announced plans to acquire 3D at its tiny Baola and Modhera oil and gas blocks and hire a drilling contractor to restart production at Baola this year. “Interlink was supposed to have issued a tender to acquire 3D for Baola and Modhera in the last quarter of 2008,â€‌ a company source tells PETROWATCH.

“But the move was postponed. We wanted to issue tenders in the last week of October but due to the global credit crunch and the drop in oil prices all this has been put on hold.

â€‌ Earlier news about Baola coming on stream generated keen interest among central Gujarat gas users that wanted to buy gas directly from a producer rather than through CGD operators. When the field began producing 12,000 cm/d in June 2001 from the Baola-1 well, CGD operator Charotar Gas was Interlink's main customer, receiving the gas through a 3-inch, 65-km-long pipeline to Anand, and the milk capital of India, where Charotar is based.

But Charotar switched over to GSPC Gas after Baola-1 was plugged in 2004 because of increased water cut and declining production. In 1999, Gujarat Gas wanted to buy Baola from Interlink Petroleum, but the deal never happened.

Little has moved for Interlink in the last few months except that its Vadodara office in the upmarket Akota locality has shifted to the more modest Gotri Road locality. “People read between the lines,â€‌ says an industry analyst.

“What does it mean when you move from a posh area to an â€کupcoming’ areaâ€‌