Press Releases

[New Delhi, July 26, 2005]

GAIL Consortium bags Two Exploration blocks

New Delhi, July 26, 2005. GAIL Consortium has bagged 2 blocks under NELP-V, one Deep Water Block (AN-DWN-2003/2) in Andaman with ENI India Limited and ONGCL and the other Onland Block (CB-ONN-2003/2) in Cambay, Gujarat with GSPCL, Jubilant Capital Pvt. Ltd and Geo Global Resources.

Out of the remaining 2 blocks (AA-ONN-2003/1 and AA-ONN-2003/2, both in Assam Arakan region), for which the award is yet to be announced, GAIL is expecting atleast one.

Currently, the company is involved in exploration activities over an acreage of 67,118 sq km, and plans to invest approximately Rs 600 crore in E&P activities over the next three years.

GAIL now holds a participating interest in 13 exploration blocks, comprising two in NELP-I, five in NELP-II, two in NELP-IV apart from two ‘farm-in’ blocks. GAIL has managed to extend the partnership in these ventures to various companies such as ONGCL, GSPCL, Gazprom, OIL, IOCL, Hardy Exploration & Production, Enpro Finance Private Ltd., Daewoo, OVL and Korea Gas Corporation. Similarly, GAIL’s participating interest in these blocks varies between 10 to 80 per cent and in Basins such as Mahandai, Bengal, Gujarat –Saurashtra, Mumbai, Cambay, Assam-Akaran and Cauvery.

GAIL along with GSPC, has struck oil in the Cambay basin block CB-ONN-2000/1 and the commercialization of the block is expected soon. Presently production is planned with estimated recoverable reserve of 3.5 MMBBL, for 10 years.

GAIL is also going to acquire a stake in the Yadavaran fields in Iran and all of these would increase the company’s kitty from 13 blocks to 16-18 blocks in the medium term in the domestic and foreign markets. Furthermore, GAIL has also got stake in the A-1 block in Myanmar and is likely to get a stake in the A-3 block in Myanmar also.

The strategy is to acquire E&P acreage in the international arena in consortium with international E&P players. Recently GAIL has been qualified as non operator to participate the ongoing 2nd round of bidding in Libya. Also GAIL has been pursuing several “farm in” opportunities world wide in pursuit to gain strategic foot hold in international E&P market.