BG Sees Potential To Double Tapti Gas Field Output In 2 Years

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New Delhi, June 10: : British oil and gas major BG Group on Monday said there existed potential to double Tapti gas field output from the current level of 184 million cubic feet per day in the next two years.

“We believe development of Tapti offshore gas field (on the western coast) could double the current output in the next two years,” BG India Chief Executive Nigel Shaw told here.

He, however, did not quantify the investment needed for development of the field. “It (the investment) would depend on the models we decide to adopt.”

BG Group, which bought bankrupt Enron Corp’s entire 30 per cent shareholding in Panna-Mukta oil and gas field and Tapti gas field early this year, has proposed development of the gas field predicting global production of 66.8 billion cubic feet of gas and 789,000 barrels of condensate in 2002-03.

In 2003-04, BG expects production of 67.7 billion cubic feet of gas and 708,000 barrels of condensate.

“Investments in the field depend on how soon we are able to resolve the issue of operatorship with Oil and Natural Gas Corporation and Reliance Industries,” Mr Shaw said.

The partners are in talks to resolve the row over management rights and currently negotiating a joint operatorship model. In March, average daily oil production at Panna-Mukta oil and gas field was 27,994 barrels per day while average gas production was 86.22 million cubic feet per day. At Tapti, gas production averaged 184.74 million cubic feet per day.

State-run ONGC holds 40 per cent stake in the field while the remaining 30 per cent stake is with RIL.

On development of CB-OS/1 exploration block in the Gulf of Cambay, which was also part of the $350 million deal to buy Enron Oil and Gas India Ltd’s assets in India, Mr Shaw said BG had encountered presence of hydrocarbons in the one well drilled so far.

While declining to confirm if oil and gas had been discovered, he said “appraisal of the discovery can only be made after we complete the three well drill programmes.”