OREANDA-NEWS. The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that Gujarat State Petroleum Corporation (GSPC) has not intimated about the start of commercial production of gas from its discoveries in the Block (KG-OSN-2001/3) in KG basin. As per the approved Field Development Plan, initial production of 1.0 MMSCMD (Miliion Standard Cubic Meters per Day) and peak production of 5.0 MMSCMD is envisaged.

On 13.10.2014, GSPC has requested this Ministry to nominate Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (GNFC) for supply of DDW field gas at price and delivery terms actually negotiated between GSPC and GNFC based on arm’s length principles. GSPC has also informed that GNFC agreed to purchase gas produced from DDW field at 8.5 \$/MMBTU. In this regard, on 14.11.2014, this Ministry has decided that the matter of pricing of DDW gas would be as per the New Domestic Natural Gas Pricing Guidelines, 2014 notified on 25.10.2014. PPAC has notified the gas price of US \$5.05(GCV) based on above mentioned guidelines to be applicable from 1.11.2014. For development of discoveries made in Ultra Deepwater & Deepwater Areas, (well head shut-in pressure > 690 bars, bottom hole temperature > 150 degree centigrade), it has been decided to give a premium for all such discoveries after the issuance of these guidelines, on the price determined as per the abovementioned Guidelines.