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GeoGlobal Resources (GGR) Gets Approval for Offshore Oil

GeoGlobal Resources, Inc., an oil and natural gas exploration and development company focusing on India, has announced another step forward in its bid for oil off the coast of eastern India, as part of a consortium led by GSPC (Gujarat State Petroleum Corporation). The company has announced that all signatures for the approval of the Field Development Plan for the Deen Dayal West Gas Field in the KG-OSN-2001/3 (KG Offshore) exploration block have been obtained.

The Field Development Plan includes fifteen wells; four existing wells (KG#8, KG#15, KG#17 and KG#28) and eleven new development wells, which include three slant wells and eight multilateral wells to be drilled.

Production facilities will include the following:

• Two offshore platforms (one well head and one central processing)
• 20 kilometer long pipeline of 24 inch diameter up to landfall point
• One onshore gas terminal, to include a gas sweetening unit, gas dehydration unit, dew point depression unit, condensate stabilization unit, sulphur recovery unit, and a captive power unit.
Delivery point for gas will be the outlet flange of the delivery facility located at the onshore terminal at Mallavaram Village, near Yanam, Kakinada, Andhra Pradesh. First gas production is to begin in December of 2011.

GSPC will act as operator, and will apply for a 17 square kilometer mineral lease to cover this area. GSPC estimated in the Field Development Plan that, on a preliminary basis, the gross costs for the production facilities will be approximately US$941 million and US$860 million for future development drilling costs.

GeoGlobal president and CEO, Mr. Jean P. Roy, said, “We are very pleased that GSPC, leading the consortium, has accomplished these first steps towards achieving production from the Deen Dayal West Gas Field for as early as December 2011. We intend to continue to work with our partners to bring the additional wells already drilled within the remainder of the Deen Dayal field on stream in the near future.”

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