OilVoice - GeoGlobal Announces KG Offshore Field Development Plan Approval

GeoGlobal Announces KG Offshore Field Development Plan Approval

Thursday, November 12, 2009

GeoGlobal Resources Inc. announces today that all signatures for the approval of the Field Development Plan for the Deen Dayal West Gas Field in the KG-OSN-2001/3 (KG Offshore) exploration block have been obtained.

As previously reported on June 18, 2009, GSPC submitted the Deen Dayal West Field Development Plan in accordance with the provisions of the Production Sharing Contract to the Management Committee including the Government of India for approval.

The Field Development Plan was approved with the following details:

• Includes fifteen wells; four existing wells (KG#8, KG#15, KG#17 and KG#28) and eleven new development wells which include three slant wells and eight multilateral wells to be drilled.
• Production facilities to include:
- Two offshore platforms (one well head and one central processing);
- 20 kilometer long pipeline of 24 inch diameter up to landfall point; and
- One onshore gas terminal to include a gas sweetening unit, gas dehydration unit, dew point depression unit, condensate stabilization unit, sulphur recovery unit and a captive power unit.
• Delivery point for gas will be the outlet flange of delivery facility located at the onshore terminal at Mallavaram Village, near Yanam, Kakinada, Andhra Pradesh.
• First gas production to commence December 2011.
• GSPC as operator will apply for a 17 square kilometer mineral lease to cover this area.

GSPC estimated in the Field Development Plan that on a preliminary basis, the gross costs for the production facilities will be approximately US$941 million and US$860 million for the future development drilling costs.

"We are very pleased that GSPC, leading the consortium, has accomplished these first steps towards achieving production from the Deen Dayal West Gas Field for as early as December 2011" states Mr. Jean P. Roy, President and CEO of the Company. "We intend to continue to work with our partners to bring the additional wells already drilled within the remainder of the Deen Dayal field on stream in the near future."