GUJ GOVT AND INDUSTRILLISTS TO VISIT SASKATCHEWAN IN CANADA

After bagging exploration & production (E&P) blocks in Egypt, Yemen and Australia, the state-owned Gujarat State Petroleum Corporation (GSPC) is now looking at Canada's second largest oil-producing province of Saskatchewan. Currently only 15% of the more than 41 billion barrels (6.5 billion cubic metres) of oil initially in-place is recoverable based on current and expected conditions. With 85% of the oil remaining in the ground, there is excellent potential for the use of enhanced oil recovery methods and new technologies.

Saskatchewan's minister of enterprise and innovation, Lyle Stewart, during his visit to Ahmedabad recently had told DNA that they want companies from Gujarat to come and invest in developing oil fields in their province. "Currently, our province supplies more oil to the USA than Kuwait," said Stewart.

GSPC's managing director, DJ Pandian, who was present during the Canadian delegation's interaction with Gujarat's chief minister and other state representatives, told DNA that they will certainly explore this new opportunity. "A team from Gujarat will go soon and study the quality of the reservoirs, the estimated cost of extraction as well as the terms and conditions offered by their government for profit-sharing. While preliminary findings show that there are significant quantities of oil available, the conventional way of extracting will not work there as they are sand-blocks.

So, we will have to use newer and more costly technology to get the oil out," added Pandian. Approximately 300 companies operate in the upstream oil and gas sector on behalf of nearly 1,300 working interest owners. The industry provided over $1.8 billion in revenue in 2007-2008 and is one of the largest contributors to the provincial economy.

DNA Correspondent/ DNA-Daily News & Analysis Source: 3D Syndication