It’s ironical that while Petroleum Minister Mani Shankar Aiyar has been globetrotting for hydrocarbon equities and assets, domestic firm Gujarat State Petroleum Corp Ltd (GSPCL) discovered the biggest gas discovery in KG Basin in the last 30 years.Estimated at $50 billion, the natural gas find of 20 trillion cubic feet (TCF) is being viewed as a better proposition than the Reliance gas find. According to industry experts, this well is in shallow water compared to the Reliance find and hence commercially more viable. The discovery was made at a depth of 5,061 meters. The initial estimates of GSPC find are more than Reliance’s 14 TCF find in deep sea in the same KG basin and ONGC’s Bassein field, off Mumbai coast, which has 10 TCF of proven reserves.Further, as an oil ministry official pointed out that the find will definitely help India in negotiating a better price for its gas deals in Myanmar, Qatar and Iran. ‘‘It will give us a bit more leeway in negotiating price with these sellers. The sellers now know we have something to fall back on at home,’’ the official added.But analysts felt there were a couple of hitches. For one, the claimed gas reserves need to be verified and tested by the Directorate General of Hydrocarbons and well as by third-party independent agencies. Experts say out of the 20 TCF being claimed, only 50-60 per cent is recoverable reserves which turn out to be 10 TCF to 12 TCF.This should take care of 10,000 MW of power for a year. ‘‘India’s power demand is to the tune of 10,000 MW per annum. We need one such find every year,’’ said a senior official in a MNC in the hydrocarbon sector. Experts added that since the Bay of Bengal had high potential, it would make sense for the oil ministry to ask domestic oil firms to invest in the region. GSPCL is planning an IPO of 10-20 per cent of equity to part fund the Rs 1,500 crore investment for beginning production from the Bay of Bengal field by 2007-end. ‘‘We plan to invest of Rs 1,500 crore in developing the gasfield. The money will be raised through debt, internal resources and IPO,’’ GSPCL MD D.J. Pandian said.
