Adani Welspun Exploration Ltd (AWEL) on Monday announced its first-ever gas discovery in the NELP-VII block.
AWEL holds 100 per cent participative interest and is the operator of the block MB-OSN-2005/2. Spread across 714.6 square km, it is located in the prolific gas-prone Tapti-Daman sector of Mumbai offshore basin where production is already underway by other operators.
The company said that pay zones and flow rates encountered have exceeded its initial estimates. With the information received from adjoining fields, the discovery is of substantial significance.
AWEL was awarded the block under the New Exploration Licensing Policy (NELP) VII bid round. Early indications pointed to the occurrence of gas-bearing reservoirs within sandstone reservoirs of the Mahuva and Daman formations.
The drilling of current well in March confirmed the presence of substantial quantities of gas and condensate in the block. Out of the three potential zones identified during drilling, two objects tested by drill stem testing flowed substantial gas and condensate to the surface.
"In addition to being value accretive for the company, this discovery could be a significant breakthrough for our nation, given India's focus to nearly triple the share of natural gas in its energy mix by the end of this decade," said AWEL Managing Director Sandeep Garg.
The company is also an operator with 100 per cent participative interest of an adjacent discovered small field B-9 cluster. "The proximity of these two prospective blocks will enable AWEL to synergise and optimise development of both the blocks," said Garg.
AWEL is a joint venture company between Adani Group and Welspun Group undertaking upstream oil and gas business. Adani Group holds 65 per cent through its flagship company Adani Enterprises while Welspun Group holds 35 per cent through its subsidiary Welspun Natural Resources.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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