Phase I of Panna-Mukta Development Estimated at $140 Million

BG Group and its partners will invest $140 million over the next 18 months in development of Panna-Mukta and Tapti fields offshore India to improve production.

"The partners have approved investment of $140m in phase-I expansion of the Panna-Mukta oil and gas fields and Tapti gas field," Nigel Shaw, CEO, BG India, told reporters here. The first phase investment, which is awaiting government approval, will increase crude oil production from Panna-Mukta fields by 5,000 barrels per day to over 30,000 barrels per day by the end of 2004. Gas production from Tapti will increase by 2-2.5m standard cubic meters per day over current production of around 6 mmscmd.

Four in-fill wells would be drilled in Tapti and 7 wells at Panna-Mukta fields. Another 11 in-fill wells can be drilled on Panna-Mukta, he said.

Mr. Shaw said in the second phase, beginning by end 2004 and lasting 2007, another $450 million will be investment to increasing production from the fields. "With this investment Tapti gas field production would rise to close to 13 mmscmd," he said. The investment in Panna-Mukta field would result in an incremental oil production of 18.5m barrels (2.46m tons) and 2.15bn cubic meters of gas. He said the proposed investments would be shared among the partners in proportion to their equity. While ONGC has 40% stake in the fields, BG and Reliance Industries have 30% each.

Natural gas production from Panna-Mukta will increase to 2.67 mmscmd in 2004-2005 and to 2.88 mmscmd in 2005-2006 from current year estimate of 2.61 mmscmd. Tapti gas production would jump from 5.24 mmscmd (2003-2004) to 8.07 mmscmd in 2004-2005 and 11.78 mmscmd in 2005-2006. For the ten years beginning 2007-2008, Panna-Mukta would have additional gas production of 2 mmscmd and Tapti of 3 mmscmd, Shaw said.