Gujarat State Petroleum Corporation (GSPC) has struck gas in the KG-21 well located on the western side of Deendayal West block at Krishna Godavari Basin off the Andhra Pradesh coast on 3 April 2009.

In the KG-21 well, GSPC has made a discovery of gas at 5,656 mtrs depth and 800 mtrs gas column has been encountered during the drilling operation. Initially, the company had found 20.3 million metric standard cubic meters of gas per day in the well. The proposed well is estimated to produce more than 100 million metre standard cubic feet gas per day which is subject to approval by the Director General of Hydrocarbons (DGH).

The DGH has already commercially certified a gas discovery of 1.26 trillion cubic feet (TCF) in KG-22 well by GSPC in the Krishna-Godavari basin. GSPC had claimed a commercial potential of 5.6 TCF before the DGH, but the DGH has certified a minimum discovery of 1.26 TCF, which is subject to upward revision on a more detailed appraisal.

So far, GSPC has invested more than $800 million (approx Rs 4,000 crore) in the K-G project and plans are afoot to invest another $1.5 billion (approx Rs 7,500 crore) in exploration and transporting the gas to Gujarat.

Also See:

GAIL, GSPC plan to build KG basin pipeline (04-Apr-09)