Jindal Petroleum discovers oil in Georgia; to spend $100 mn

Jindal Petroleum, a group firm of Jindal Steel and Power, has discovered crude oil in one of its blocks in Georgia and is planning to invest $100 million on development of its blocks in the East European country.

Jindal Petroleum currently holds five oil blocks in the Georgia, including a producing oil block and has already invested $100 million on development of the blocks, Jindal Steel and Power Deputy Managing Director Sushil Maroo told reporters here.

"One block we drilled very recently (in Georgia) and we have got a success. Crude is flowing there, we are examining it at what rate it will come out, what will be the reserve and all the parameters are being tested. Though its an exploration block, oil flow has started in a good quantity," he said.

He added that "in all the blocks together, we have invested $100 million and we are planning to invest another $100 million this year on the well drilling programme".

Jindal Petroleum was established in 2008 by JSPL as part of its diversification process. Besides Georgia, the company has one block each in India and Bolivia.

Maroo said that the quality of the crude oil discovered in the block is similar to Brent, the benchmark for best grade. Moreover, the reserves at the already producing block has about 250 million barrels.

"We have got the indication of 250 million barrels in one block. We have plans to drill many more blocks. When you drill a well, you have multiple structure and certification of reserve is an ongoing exercise," he said.

According to Jindal Petroleum's website, the company carried out drilling operations on XIB licence block in Georgia between January 26, 2013 and March 8, 2013.

"While conducting testing operations on a 2,450 metres deep declined well, stable blow out of  dry crude oil occurred releasing 24 cubic metres of oil per day. According to geological forecasts, volume of oil, available for extraction in this area, ranges between 2.4 million and 8.7 million tonnes," it said.