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Latest gas find by GSPC-Oilex in Cambay basin  

AHMEDABAD: Gujarat State Petroleum Corporation (GSPC) is learnt to have struck a huge cache of gas in the Cambay basin of Gujarat. GSPC, in a joint venture with Australian exploration & production (E&P) company Oilex, has found around 20-22 trillion cubic feet natural gas reserve, probably the biggest onshore gas find to date, sources in the Gujarat government told ET.

"The logs from data collected by drilling wells in the block show that we have probably run into 20-22 tcf of natural gas entrapped in the Cambay basin. However, it is geologically trapped gas in tight formation (difficult to extract commercially)," a state government official said on condition of anonymity. However, the corporation is not going to town with the discovery. A major reason behind the subdued excitement among the GSPC brass is the highly low recovery factor of its latest find.

An industry expert said: "It being tight gas, the operational expenses to recover this gas would be higher. Also, the quantity recoverable could be much lower. GSPC-Oilex would be more than happy to commercially recover even 2 tcf of this find." Another reason for GSPC underplaying the gas find could be traced to its much-hyped discovery of 20 tcf in the KG basin in June 2007. State chief minister Narendra Modi, who was in his election year, announced the discovery amid much fanfare, terming it as the biggest gas find in the country then.

However, the upstream hydrocarbon regulator, the Directorate General of Hydrocarbons contested the claims, and has till date ratified a gas find of just 2 tcf. A gas industry source in the know of events said, "Analysing tight gas is a difficult job. Oilex appointed three different consultants working in North America, and apparently all of them have confirmed that there is plenty of gas in the basin." The latest gas find by GSPC-Oilex is significant as it is onshore gas, which is relatively easier to recover and monitise. The DGH will have the final say for establishing the exact quantity of gas. COURTESY:ET


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