DGH approved GSPC's find in KG basin
The Director General of Hydrocarbons (DGH) has declared certification for a gas discovery by the Gujarat State Petroleum Corporation (GSPC) in the Krishna-Godavari basin. The decision would help to make Gujarat, the gas hub of the country. Experts believe that the commercial value of approved Krishna-Godavari basin offshore block KG-OSN-2001/3 would be around $6 billion as per the prevailing market prices.
A GSPC official said, "GSPC is now undoubtedly set to enter the league of energy giants. The approved commerciality concerns about 15 sq km of our over 100 sq km asset in the KG basin. DGH approval has shot up our valuations and GSPC will be enabling to raise necessary funds from the markets."
It is recalled that the Gujarat government had announced the "huge discovery" in July 2005. It is time for the state government to celebrate amid global slowdown and the State Chief Minister, Narendra Modi would do his best to cash in on the opportunity. He visited KG-22 well in July 2008 and declared the value of the entire Deen Dayal block of GSPC at $100 billion. Gujarat would hold third investment summit on January 12-13 to discuss energy and infrastructure issues.
A top GSPC official said, "We are glad that DGH has recognised our efforts. The approval will now enable us to pursue our goals more aggressively. We will submit a detailed field development plan to the authorities."