Petrobras Exits Krishna Godavari Basin Gas Discovery, ONGC and Shell in the Race

As Brazil's Petrobras decides to withdraw from the Krishna Godavari basin gas discovery block, India's Oil and Natural Gas Corp (ONGC) and Royal Dutch/Shell are keen on filling the vacuum. Petrobras is willing to offload its 15 per cent stake in the KG-DWN-98/2 block to ONGC, allowing the Indian firm to take charge. ONGC has made 10 gas discoveries in the block, including the ultra deepsea UD-1 find, which is estimated to hold 2.08 trillion cubic feet of reserves. Shell has offered technology to convert natural gas into liquid (LNG) at a floating offshore facility, while BP has proposed conventional methods. A decision will be made after ONGC acquires Petrobras' shareholding in the block.

Key Takeaways:

• Petrobras is withdrawing from the Krishna Godavari basin gas discovery block to focus on developing massive oil and gas finds in Brazil.
• ONGC has made 10 gas discoveries in the block, including the ultra deepsea UD-1 find, which holds 2.08 trillion cubic feet of reserves.
• Shell has offered technology to convert natural gas to liquid at a floating offshore facility, while BP has proposed conventional methods.
• ONGC plans to tie up gas discoveries in KG-DWN-98/2 (excluding UD-1) with three other gas finds in the KG basin.
• Gas production is expected to begin by 2013, with the Vashistha and S-1 discovery alone yielding six million standard cubic meters per day (mmscmd).

Statistics:

• Petrobras' stake in the KG-DWN-98/2 block: 15%
• Estimated in-place reserves in the KG-DWN-98/2 block: 5-15 trillion cubic feet
• Reserves in the ultra deepsea UD-1 find: 2.08 trillion cubic feet
• Number of gas discoveries made by ONGC in the block: 10
• Estimated output from the Vashistha and S-1 discovery: six mmscmd
• Expected gas production start date: 2013

Sources:

• Euclid Infotech Pvt. Ltd.
• [Source not provided in the original text]