GAIL lines up Rs 769 cr for oil, gas exploration

Gas transmission and marketing company GAIL India said it has plans to invest about Rs 769 crore in oil and gas exploration in India and abroad during the current financial year ending March.

"This (financial) year, our investments in exploration will be nearly double compared with 2007-08, when we spent around Rs 350-400 crore," a senior executive said.

The state-run company holds interest in 30 exploration blocks in India and overseas, including three coal bed methane blocks.

The executive said GAIL will invest Rs 146 crore in a block in Assam Arakan Basin, in which it holds 80% interest.

Delhi-based Jubilant Enpro is the operator of the block with 20 per cent interest, which was awarded under the fourth round of New Exploration Licensing Policy (NELP-IV). GAIL plans to invest Rs 1 crore as its share in an offshore block.

located in the northern part of the Cauvery Basin, the official said. The company holds 25 per cent interest in the block -- CY-OS/2 -- while Hardy Exploration Production India is the operator, holding the remaining 75 per cent.

The official said oil and gas discoveries have been made in this block and it is currently in the appraisal phase.

The operator is likely to undertake drilling of three wells and two contingent wells in the block, which is expected to start in October.

He said GAIL also plans to invest around $26.9 million (over Rs 110 crore) in foreign currency on exploration and appraisal in its overseas blocks in Myanmar and Oman.

The company holds 10 per cent interest each in A-1 and A-3 offshore blocks in

Myanmar, estimated to hold 4.53 trillion cu ft gas, while it own 25 per cent interest in Block 56 in Oman.

"Investments in Myanmar blocks could be around $18.2 million ( about Rs 80 crore), while for Oman block is seen around $8.7 million (qbout Rs 40 crore) ," the executive said.

The gas transmission major also plans to invest more than Rs 33 crore in the three coal bed methane blocks it holds.

The PSU stock ended at Rs 400.65, up 4.04 per cent, on the Bombay Stock Exchange on Tuesday.