22-01-02 Overcoming long-standing interruptions, the Gujarat government has finally approved a Rs 75-crore oil and gas exploration project off the Gulf of Khambhat, sharply raising the dormant hope that the state might be on way to self-sufficiency in the sector. The exploration, to begin in early April in a 650-sq km area mainly in the Dholka area south of Ahmedabad district, would also involve major pockets of Kalol in the Gandhinagar district. "If successful, Gujarat would hit a jackpot," said an official.
Involving research drilling, mud-testing and exploration, a top bureaucrat said, "A minimum of seven wells will be dug in the vast expanse. The exploration would continue for 12 to 15 months, with central and state PSUs Gujarat State Petroleum Corporation and the Gas Authority of India sharing 80 % of the expenses, while Joshi, a foreign firm, spending the rest of the 20 % money.

If oil and gas are found, Gujarat will have a second on-shore oil and gas field in its territory. The only existing gas field at Hazira with the production of 3 mm cmpd is fast depleting, officials concede, though there is a standing controversy between those involved in obtaining gas on whether it can produce more for the state. All the gas produced by it is consumed mainly by industries in the Hazira and Vadodara area.
To put a stop to the controversy, a top Texas American firm DeGolyer and MacNaughton has been asked to do a survey of whether the gas field at Hazira is depleting, and if yes, then how fast. An official said, "The survey report would be out by next month, based on which we would know how much capacity the state has from its own gas fields and how much it would require from outside." Apprehensions on the possible impact on the industry in Hazira and Vadodara if gas supplies slow down are strong.

The current requirement of gas in Gujarat is estimated at 10 mm cmpd. Already, a preliminary survey by the Oil and Gas Natural Commission shows that there are "huge oil reserves" starting from Dholka to Kalol. "We will augment these studies by conducting two-dimensional and three-dimensional seismic studies by collecting and collating data after carrying out research drilling," the official said.
The work would be carried out by expert firms who would be selected on the basis of competitive tenders. Meanwhile, the Gujarat government is going ahead with putting up its own gas grid in the state for transmission and distribution of off-shore and on-shore gas. So far, Rs 200 crore have been spent for the 90 km-long gas pipeline, and work is in progress for another 60 km in the Hazira-Dahej-Maura-Amboli area in Central and South Gujarat.

Government officials say, the gas made available in the state could be more usefully and cheaply used if the state has its own network. The view is strong here that the Centre's objection to Gujarat seeking to put the gas grid under the state's own jurisdiction through the Gas Act would not be allowed to come in the way of having a state gas grid. The matter has gone to the President of India for clearance, who in turn has asked the Supreme Court for guidance.