Every cloud has a silver lining and every adversity hides an opportunity. GAIL's Exploration And Production (E&P) unit was born in just such a scenario.
As the Indian Economy opened up around the year 2000, the business environment changed dramatically. For GAIL, liberalization meant competition in our core business i.e. Midstream and downstream national gas distribution No longer could we rely on statutory support mandating secured sources of Natural Gas for GAIL. The reserves contained in existing contracted fields were fast depleting. The writing was on the wall that we had to find new sources.
Apart from securing sources for Natural Gas, there were other compelling reasons for GAIL to get into E&P:
- Integration in supply-chain
- Large gap in Gas demand and supply
- National Gas security
- Balancing of Business portfolio
- Global opportunity
GAIL is currently participating in 12 E&P Blocks, in Basins such as Assam-Arakan (2), Cambay (5), Cauvery (1), Gujarat Kutch (1), Myanmar (2), and Rajasthan (1). GAIL has partnership in these blocks with various companies such as ONGC (1), OIL (1), GSPC (2), BPRL (1), Hardy Exploration & Production (1), JOGPL (1) and POSCO International Corporation Daewoo (2) as Operators. Out of these 12 E&P blocks, 2 blocks are overseas (A-1 and A-3 blocks in Myanmar).
Hydrocarbon discoveries are in place in 9 E&P blocks. Blocks with hydrocarbon discovery are: CB-ONN-2000/1, CB-ONN-2003/2, CB-ONN-2010/11, CB-ONN-2010/8 (Cambay Onland in Gujarat), Block A-1 and A-3 Myanmar, AA-ONN-2002/1 (Tripura Onland), GK-OSN-2010/1 (Gujarat Kutch Offshore) and CY-OS/2 (Cauvery Offshore).
Production of crude oil is in progress from Cambay Onland blocks CB-ONN-2000/1, CB-ONN-2003/2 and CB-ONN-2010/11. Production of gas is in progress in 2 blocks in Myanmar (A-1 & A-3). Development activities have been initiated in Tripura Onland Block (AA-ONN-2002/1) and Cambay Onland Block (CB-ONN-2010/8).
GAIL is also a member of National Gas Hydrate Program (NGHP) being coordinated by DGH and is actively involved in activities related to Gas Hydrate exploration.
