‘GSPCL’s gas estimates conservative’

GSPCL Managing Director D.J. Pandian said the company planned to produce 10 million standard cubic metres per day (mmscmd) of gas from December 2007 and peak production of 80 mmscmd could be reached in two years’ time. The development of the field will require Rs 1,500 crore, which GSPCL plans to raise through a mix of internal accruals, debt and an IPO.

Modi said the output from GSPCL’s field would be equal to India’s current natural gas production. ‘‘The field will double India’s gas output.’’ GSPCL holds 80 per cent interest in KG-OSN-2001/3 block, while Geoglobal Resources of Canada and Jubilant Enpro have 10 per cent each.

Two previous wells drilled by GSPCL in the same block were dry and the company struck success in the third well, called KG-8 (now named Deen Dayal), at a depth of 5,061 metres below the sea bed. Eleven more exploration wells would be drilled in the block, Modi said.

Countering DGH’s view on the reserves, Modi said his claim of more than 20 trillion cubic feet of gas reserves in the field were based on technical and scientific inputs. However, Sibal said reserves cannot be estimated based on just one well.

‘‘We have also got a third-party verification (of the reserves),’’ Modi claimed though officials of GSPCL said international agencies Degolyer & Mcnaugthon of US and Gaffney Cline Associate of UK would certify the reserves. Modi mentioned the name of Petrotel of USA, which GSPCL officials said was involved only in pre-drilling interpretation of seismic data.