Krishna Godavari Offshore Block
KG-OSN-2001/3
Wells on KG Block
Bottom Hole Location
| February 4, 2003 |
Signed Production Sharing Contract (NELP III) |
| March 12, 2003 |
Production Exploration License issued |
| Area |
Approximately 1,850 sq.km (457,145 acres) |
| GGR PI |
10% (net 5% carried interest and RGM is 5% net carried interest) |
| Partners |
Gujarat State Petroleum Company = 80% (operator)
Jubilant Offshore Drilling Pvt. Ltd. = 10% |
| As at August 13, 2010, a total of 16 wells have been drilled on this block |
Block Commitments
Total wells to be drilled in all phases are 20 (14 + 4 + 2)
| (i) |
1,250 km2 3D seismic program consisting of acquisition, processing and interpretation |
| (ii) |
Reprocessing of 2298.4 LKM of 2D seismic data |
| (iii) |
Bathymetric survey and seabed sampling |
| (iv) |
Drill 14 exploratory wells between 900 to 4,118 meters |
| (i) |
Bathymetric survey and seabed sampling |
| (ii) |
Drill 4 exploratory wells between 1,100 to 2,850 meters |
| (i) |
Bathymetric survey and seabed sampling |
| (ii) |
Drill 2 exploratory wells to 1,550 and 1,950 meters |
| (i) |
Phase I – 25% |
| (ii) |
Phase II – 25% |
| (iii) |
Phase III – 100% except for development and discovery areas |
Changes and Updates to Phase Work Commitments:
November 11, 2009
The Field Development Plan was approved with the following details:
- Includes fifteen wells: four existing wells (KG#8, KG#15, KG#17 and KG#28) and eleven new development wells which include three slant wells and eight multilateral wells to be drilled.
- Production facilities to include: two offshore platforms (one well head and one central processing); 20 kilometer long pipeline of 24" diameter up to landfall point; and one onshore gas terminal to include a gas sweetening unit, gas dehydration unit, dew point depression unit, condensate stabilization unit, sulphur recovery unit and a captive power unit.
- Delivery point for gas will be the outlet flange of delivery facility loated at the onshore terminal at Mallavaram Village near Yanam, Kakinada, Andhra Pradesh.
- First gas production to commence December 2011 (As at August 13, 2010 - now expected to be June 2012 or later).
- GSPG as operator will apply for a 17 sq. km. mineral lease to cover this area.
December 6, 2008
The PSC sets forth procedures whereby the operator can obtain the review of the Management Committee under the PSC as to whether a discovery on the exploration block should be declared a Commercial Discovery under the PSC. GSPC, as operator on behalf of the consortium submitted to the Management Committee approval, the proposal for a Declaration of Commerciality on the KG#8 and KG#15 discoveries (referred to as the Deen Dayal West Structure) under the terms of the PSC. Therefore, on December 6, 2008, the Management Committee signed a resolution stating that pursuant to the PSC, they reviewed the proposal for Declaration of Commerciality of the Deen Dayal West Structure. With this review by the Management Committee being complete, GSPC intends to submit, within one year, a development plan for the Deen Dayal West Structure to the Management Committee for approval.
October 3, 2008
DGH noted the completion of the Minimum Work Program for the New Phase II and returned to GSPC their Bank Guarantee.
August 27, 2008
GSPC advised DGH that with the completion of drilling the KG#31, KG#22 & KG BRU-1 wells that the consortium had achieved a total meterage drilled of 48,360 meters. The total meterage required to be drilled under the original Minimum Work Program of three exploration phases (now divided into two New Phases) for twenty wells was 45,352 meters, and as such, the consortium has now completed the Minimum Work Program for all Phases on this block under the terms of the PSC as entered into.
July 12, 2007
GSPC notified DGH that it was exercising the option granted under the new policies to: (1) request a merger of Phases I and II of the work program called the New Phase I with the effect of establishing a new work program phase expiring March 11, 2008 and (2) to merge the minimum work program of Phase II and Phase III into a new phase to be called New Phase II. GSPC also exercised the option to substitute a total meterage drilled commitment in the new Phase I work program phase that would be irrespective of the number of wells drilled. Therefore, minimum work program for the New Phase I would be to drill 33,102 meters. GSCP informed DGH as at Sept 17/07 that a total of 33,224 meters has been drilled and therefore, subject to the GOI approval of the merger of Phases I and II, the minimum work program for the New Phase I has been completed. The New Phase II would have a term of 1.5 years expiring September 11, 2009 and the drilling of a further 12,250 meters would be required in order to meet the minimum work program. Under these new policies, any contractors who exercise this option would be required to relinquish 50% of the contract area at the end of the New Phase I that is not a Discovery or Development Area as defined in the PSC.
March 12, 2007
DGH noted the option of GSPC and advised that entry into Phase II, is subject to the following conditions: (1) any decision by the GOI on the substitution of the work program of Phase I will be binding on the contracting parties; and (2) any decision by the GOI on relinquishment of the 25% of original contract Area (ie. 462 sq.km) under the PSC would be binding on the contracting parties. The extension of Phase I for the 18 months to March 11, 2007 would be deducted from Phase II. As such, Phase II would have a term of one year and expire March 11, 2008 and four additional exploration wells would be required to be drilled between 1,100 and 2,850 meters before the end of Phase II to meet the Phase II minimum work commitment.
February 9, 2007
GSPC proposed to DGH to proceed to next exploration phase and not to relinquish any area.
February 24, 2006
12 month extension of Phase I to March 11, 2007.
August 25, 2005
6 month extension of Phase I to March 11, 2006.
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