|
 As part of its diversification process, in 2008, the Group has forayed into the oil and gas sector, operating under Jindal Petroleum Limited. The company has acquired five oil and gas blocks in Georgia. Mr. Naveen Jindal led a delegation to sign contracts with the Government of Georgia for exploration and production, indicating the importance of the petroleum business for the company. The company plans to invest about $ 120 mn by 2011.
 |
In July 2008, Jindal Petroleum participated in an Overseas Exploration Bidding Round in Georgia and won 4 Exploration Blocks. In all the four exploration blocks, it has a 100% participating interest. Production Sharing Contracts (PSC) for these 4 blocks were signed with the Government of Georgia in January 2009. Subsequently, Jindal Petroleum also acquired 1 Producing-cum-Exploration Block XIB in Georgia with a 75 % participating Interest. The PSC for this block was signed in March 2009. The 5 blocks have a total acreage of 17959 sq. km. with estimated recoverable reserve of over 300 MMBBL of Crude Oil and 500 BCF of Gas. Jindal Petroelum is the operator for all the blocks & is currently producing about 450 bbl/day from Block XIB.
Jindal Petroleum has taken all necessary measures to augment production and expects to produce about 10,000 bbl/day by the end of 2012.
 All exploration & production in Georgia are undertaken by “Jindal Petroleum (Georgia) Limited” through its operating company Jindal Petroleum Operating Company LLC. an affiliate of "Jindal Petroleum Limited". Jindal Petroleum Ltd. has planned to drill new exploratory wells in three Blocks this year.
Jindal Petroleum is endeavoring to optimize its portfolio in the upstream sector by acquiring a few more producing fields or exploration blocks nearing completion of exploration and appraisal phase.
The Prime Minister of Georgia recently visited Mumbai to attend the FT Invest in Georgia Forum and discuss prospects of investment in Georgia with Indian industry captains. He along with his delegation also visited the Taj Mahal at Agra.
Jindal Petroleum Limited is considering venturing into refining and marketing of various petroleum products.
The company is also planning to set up transportation as well as storage facilities for crude oil and natural gas.
The other affiliated company M/s. GTL International in Bolivia is currently engaged in the development of PALMAR FIELD, having an estimated recoverable reserve of 24.7 BCF Gas and 0.87 MMBBL of condensate. M/s. GTLI has already completed drilling of one well having a depth of 3,500 m and expects to commence the supply of 6 mmcfd of “Natural Gas” and 120 bbl of “Condensate” shortly. The drilling of the second well is in process. GTLI owns the Palmar Block (total investments till now is 20 million dollars in 2 wells plus a production plant). The recent discovery of a deeper productive zone in a neighbouring field (Iquirizone in the Rio Grande Field) enhances the potential for the Palmar Field, as that zone is present within the Palmar concession. GTLI is studying the deepening of existing wells in order to test that formation. The company has already formed a mixed partnership with the Bolivian State company YPFB, named YPFB GTLI SAM, for exploring 4 blocks (Itacaray, Rio Beni, Almendro and Cupesito).
|