GSPC wants partner for CBM block

Vol 13, PW 4 (30 Jul 09) News in Brief
     

GSPC is struggling to find a new partner for CBM block BS (3)-CBM-2003/II in the Banaskantha district of north Gujarat.

PETROWATCH learns efforts by GSPC (30%) to attract Essar to the block are drawing a blank with the Mumbai-based explorer refusing to confirm its interest one way or the other. In April, Essar was the only company to submit an Expression of Interest after GSPC secured oil ministry permission to replace earlier operator ONGC, which walked away in December last year after spending $1.2m on two test wells and eight core holes between 2006 and 2008.

“Gas impurity in this block is very high,â€‌ ONGC tells us. “The methane content is only 60% to 65% at coal seam depths of more than 1100 metres.

â€‌ ONGC and GSPC won the 790-sq-km area block during CBM-II on October 15, 2003. Reliance Energy was the only other bidder.

This block is the only CBM site in Gujarat of the total 26 CBM blocks awarded in the three rounds held so far.