FIRST DISCOVERY UNDER NELP-II BY NIKO RESOURCES LIMITED, CANADA
Shri Ram Naik, Minister
of Petroleum & Natural Gas, announced here today that Niko
Resources Limited, Canada, has made the first gas discovery in
the blocks awarded under the second round of New Exploration Licensing
Policy (NELP-II). The discovery of gas has been made in the onland
block CB-ONN-2000/2 near Surat in Gujarat.
Expressing satisfaction
over the second discovery of hydrocarbons within a fortnight of
a major gas discovery by a consortium of Reliance Industries Limited
and Niko Resources Limited in Krishna-Godavari deepwaters under
NELP-I,
Shri Naik stressed that these discoveries would be harbinger of
more such discoveries in future. Earlier, Cairn Energy have also
discovered oil and gas in Krishna-Godavari deepwaters in a block
awarded under NELP-I.
The Production Sharing
Contract (PSC) for this onland block was signed by the Government
of India with Niko Resources on 17.7.2001 under the second round
of New Exploration Licensing Policy (NELP-II). The well Bheema-I
drilled by Niko Resources encountered gas at four intervals and
combined gas flow rate from these intervals was 15.26 million
cubic feet per day (4,32,000 cubic metre per day) of mainly dry
gas using ¾ inch choke. Niko Resources has extensive plan to appraise
this discovery and is expected to drill 8 wells by March 2003.
This being an onland discovery at shallow depth is estimated to
be comparatively a low cost gas and would increase gas availability
in the western region, within a short period, possibly next financial
year.
This discovery in
the Cambay onland area has been made in the petroliferous Cambay
basin. Shri Naik said that earlier Cairn Energy had made four
oil and gas discoveries in Cambay offshore areas. With the ongoing
exploration by various companies under NELP, it is expected that
more oil and gas discoveries would be made. The objective of NELP
to accelerate and expand exploration efforts in the country, specially
in deepwater area, has already started showing results with these
discoveries and the objective envisaged under NELP has already
started paying rich dividends to the country that would enhance
oil and gas security for the country.
Shri Ram Naik congratulated
Niko Resources Limited for its success and hoped that they would
continue to do good work and find oil and gas in the country.
