Gujarat State Petroleum Corporation (GSPC), a Gujarat government-owned petroleum and gas company, plans to invest $1.7 billion towards development of its offshore Deendayal Upadhaya gas field in the Krishna Godvari basin off the coast of Andhra Pradesh in the Bay of Bengal.

Also Read   Related Stories News Now - More D-6 gas may dry up spot LNG in months - Sabarmati Gas to sell 50% stake for Rs 80 cr - PDPU seeks 100 acres more for expansion - Suzlon bags GSPC's 52 Mw wind power plant contract - Gail plans Rs 8,000 cr pipeline from Andhra to MP - APM mulls LNG terminal at Pipavav   Also Read   Related Stories News Now - Sensex makes remarkable recovery, regains 17K - L N Mittal doubles his stake in Ophir Energy - Indian handicraft firms to participate in Munich fair - Microsoft eyes Indian smartphone mkt - RIL Hazira unit bags 'Excellent Energy Efficient Unit Award' More

The company on Thursday submitted a field development plan (FDP) for 12-13 square kilometre area in the KG/OSN/2001/3 block to upstream regulator Directorate General of Hydrocarbons (DGH).

“They will drill 15 wells and expect to start gas production by 2012,” V K Sibal, director general, DGH told Business Standard. 

The plateau (when the field produces maximum) production will be from the seventh year onwards and would last till the fourteenth year. “The wells have indicative reserves of 2 trillion cubic feet of gas,” Sibal said adding that the company has invested around $1 billion in the exploration phase.

FDP for DD-West envisages production of natural gas from 15 production wells in the range of 200 – 300 million metric cubic feet a day (MMSCFD) from a six legged offshore well head platform which will be installed at KG-8 discovery well location.

GSPC  is in the process of tying up with various expert agencies who will assist it in developing this challenging high pressure/high temperature gas reservoir, said a senior GSPC executive.

Sibal said the company was developing the block on unit development scheme basis wherein it would take up small patches for development. He added that the field was a complex one and discovery was in a high temperature zone of 450 degree Fahrenheit at a water depth of 70 metre, reservoir depth of 5000 metre and 12000 PSI pressure.

Deendayal gas field was discovered in June 2005 in KG/OSN/2001/3 block awarded to GSPC consortium under the third round of New Exploration Licensing Policy. The field covers an area of 125 square kilometres (approx) with the discovery being in the Southern Part of KG block which is divided in three fault blocks identified as DD-West, DD-North and DD-East. 

Offshore wellhead platform will be connected to a nearby processing platform and a sub-sea pipeline to the onshore facility which will be developed near Yanam on the east coast of India.

Other Stories      - Sensex makes remarkable recovery, regains 17K - L N Mittal doubles his stake in Ophir Energy - Indian handicraft firms to participate in Munich fair - Microsoft eyes Indian smartphone mkt - RIL Hazira unit bags 'Excellent Energy Efficient Unit Award' More

Tags : GSPC | petroleum and gas co | Deendayal Upadhaya gas field   Read Business news in  Advertisements   Get financial advisory and solutions for your projects   Holidays starting at a delightful EMI of Rs 3481   Switch on and say hello to Monday morning !   Your dream home can now be a reality.   Visit Fortis for a preventive health check-up & get a 20% discount.   Follow the ups and downs of your investments. Try our new Portfolio Tracker   Kolkata Dock \ Freight contract for the British Gurkhas Nepal   Find how Midsize Businesses use ERP to gain competitive advantage   Trading in Forex is now as easy as 1-2-3   Discover an economical and cost effective way to market your products and services   Giftwithlove.com: Same day delivery of Flowers and Cakes to India   Download the E-book on the Future of Business Intelligence   Learn Best Practices for improving customer satisfaction   Know your customers better... download the free e-book on CRM