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GAIL signs production sharing contract for two NELP V blocks

Mumbai, September 23, 2005 

GAIL (India) Limited today signed the Production Sharing Contract for two blocks awarded to GAIL consortia under NELP-V bidding round, in presence of Shri Mani Shankar Aiyar, Hon’ble Minister of Petroleum & Natural Gas. Shri B.S.Negi, Director (BD) signed the contracts on behalf of GAIL. Shri S P Rao, Director (Projects) and Dr. U D Choubey, Director (Marketing) were also present on the occasion. 

One block AN-DWN-2003/2 is a deepwater block located in Andaman offshore area to the east of Niicobar group of islands. The block shares international boundary with Thailand and Indonesia. It covers an area of 13110 square km; the water depth in the region varies from 1600 meters to 2600 meters. GAIL has a 15 percent participating interest in the block. ENI India Limited and ONGC are the other consortium partners. The exploration activities in the block will be over a period of eight years covering three phases, which includes seismic survey and drilling of seven exploratory wells.

The second block CB-ONN-2003/2 block is located in Cambay on land basin covering an area of 448 square km. GAIL has a 20 per cent participating interest in the block. GSPCL, Jubilant and GGR, Canada are the other consortium partners. The exploration activities in the block will be over a period of seven years covering three exploration phases which includes 3D seismic survey and drilling of 24 exploration wells.

With the award of these two blocks the total exploration acreage with GAIL has increased to 77800 sq km. GAIL now holds a participating interest in 13 exploration blocks with participating interests varying between 10 to 80 percent. GAIL is planning to invest approximately Rs 800 crore in E&P activities over the next two 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 expected to sign the agreement for the A-3 block in Myanmar sometimes in early October 2005.

GAIL plans 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. 

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