Focus first gas by end-May

Vol 13, PW 23 (06 May 10) News in Brief

Delhi-based upstream minnow Focus Energy is set to begin its first Indian gas production.

PETROWATCH learns Focus should start producing 200,000 cm/d from its 176-sq km SGL field by the end of this month (May). SGL was discovered in May 2006 and is part of the 4026-sq km Rajasthan block RJ-ON/6 near the Pakistan border, one of four onland blocks Focus operates in India: two in Rajasthan, two in Gujarat.

Gas from SGL will be delivered through a 10-inch diameter, 95-km-long GAIL pipeline to a Rajasthan government power station at Ramgarh. A Focus source says production should increase to 950,000 cm/d by May 2011 in time to meet the gas requirements of a new 160-MW state-owned power station, also planned at Ramgarh.

GAIL signed a 13-year GSPA last August for SGL gas at around $4.5/mmbtu (at the wellhead). Focus (7%) operates RJ-ON/6 with affiliate iServices Investments (45.5%), Newbury Oil (17.5%) and ONGC (30%).