Gujarat State Petroleum has made its second petroleum discovery in the Krishna-Godavari Basin offshore Andhra Pradesh. GSPC struck gas at a depth of 3,500m in Well No.17 of its Deen Dayal Block.

The company has succeeded in exploring gas bulk at the rate of 4.8 million standard cubic feet per day and oil bulk of 862 barrels per day. The gas available from KG 17 well is much superior with higher C2 and C3 propane and ethane up to 17 per cent and 80 per cent methane.

With this gas available GSPC plans to have LPG separation plant either in Gujarat or in Andhra Pradesh. The stock of high grade oil with light density from the well has raised hope for more oil as the layer is located at lower depth of 3,500 metre which will reduce the cost of oil and gas production for GSPC and its partners in KG basin.

To bring gas from east coast to the west coast, GSPC has also proposed to set up 3,000 km pipeline to Ahmedabad and the proposal has been approved by the central government.

However, commercial production of natural gas from KG Basin has been rescheduled from December 2007 to December 2008 as GSPC is unable to find enough rigs and man power for commercial production.

Also See (Recursive links):

Gujarat seeks 20pc in GSPC gas field (04-May-06)