GSPC strikes $50 billion gas

Gujarat is the only state to venture into exploration and production of oil & gas.

State-owned Gujarat State Petroleum Corporation has discovered the country's largest reserves of natural gas in the Krishna Godavari basin.

Initial testing results indicate estimated reserves of over 20 trillion cubic feet of natural gas, valued at Rs 2 lakh crore ($50 billion).

"This is a historical moment for the entire hydrocarbon sector in India. This discovery will strengthen the oil and gas sector in India as it will almost double the current gas production of the nation," Gujarat Chief Minister Narendra Modi said in Ahmedabad.

GSPC, a wholly-owned state government body, started drilling in the Krishna-Godavari basin with the KG1 well on July 31, 2004.

The present discovery comes after just 300 days and a Rs 250-crore investment. GSPC had discovered gas in the Block while drilling in the KG8 well, located 6 km off the Yanam-Kakinada coast of Andhra.

Oil well

• ONGC produces 70 million cubic metres gas/day
• Reliance announced a discovery of 12 trillion cubic feet of gas in KG basin
• Gujarat is the only state to venture into exploration and production of oil and gas