India's regulator cuts K-G estimates
India’s Directorate General of Hydrocarbons (DGH) has scaled down the estimates of gas discoveries claimed by the Gujarat State Petroleum Corporation (GSPC) and state-owned Oil & Natural Gas Corporation, Indian media reported today.
The regulator’s decision is a blow to the future plans of the two companies and to India’s chances of becoming a gas-surplus nation by 2010, the Economic Times newspaper said.
The DGH said ONGC’s recent find at Block UD-1 in the Krishna-Godavari basin contains only 2.09 trillion cubic feet of gas, compared to 20 Tcc claimed by ONC.
Similarly, GSPC’s reserves at Block KG-OSN-2001/3 in the same basin were put at 1.8 Tcf of gas, against GSPC’s claim of 20 Tcf.
Both ONGC and GSPC are betting heavily on the discoveries for future growth.
The drastic downward revision could also impact the petroleum ministry’s vision of making India gas surplus by 2009-2010.
“If DGH’s report is to be believed, this shortfall will lead to increase in gas pricing in the country. Besides, it’s a big setback for ONGC and GSPC,” the newspaper quoted an analysts as saying.
”Almost all international players were in race to pick up stake in these blocks.”