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 As part of its diversification process, JSPL has recently forayed into the oil and gas sector, operating under its affiliate company Jindal Petroleum Limited.
The company acquired 7 Oil & Gas blocks in different parts of the world, including 5 in Georgia, 1 in Bolivia and 1 in India. Mr. Naveen Jindal recently led a delegation to Georgia to sign contracts with the Government of Georgia for the exploration and production of the blocks, signifying the importance the company is giving to its petroleum business. The company has so far committed an investment of US $ 200 million (Rs. 1000 crore) and is working on several other projects in the sector.
Jindal Petroleum participated in VIIth bidding round under “New Exploration and Licensing Policy” (NELP-VII) of Government of India and has been awarded one Exploration Block RJ-ONN-2005/1 in Rajasthan which has an estimated recoverable reserve of "Natural Gas" of 500 BCF.
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In August 2008, Jindal Petroleum also participated in Overseas Exploration Bidding Round in Georgia and won 4 Exploration Blocks (Block Nos. VIIA, IX, X and XIII A). In all the four exploration blocks, it has 100% participating interest. Production Sharing Contracts for (PSC) for these 4 blocks were signed with Government of Georgia in January 2009. Subsequently, Jindal Petroleum also acquired 1 Producing cum Exploration Block XIB in Georgia with 75 %. Participating Interest and the PSC for this block was signed in March 2009. The 5 blocks have a total estimated recoverable reserve of 234 MMBBL of Crude Oil and 840 BCF of Gas. Jindal is operator for all the blocks & currently producing about 550 bbl/day. Jindal Petroleum has taken all necessary measures to augment production and expects to produce about 3000 bbl/day by end 2010.
Jindal Petroleum is also planning to commence production by undertaking work over of existing wells in Block IX & X and expects to produce about 500 bbl/day by end 2010.
All exploration & production in Georgia is undertaken by “Jindal Petroleum (Georgia) Limited” an affiliate of “Jindal Petroleum Limited”.
The other affiliated company M/s GTL International in Bolivia is currently engaged in development of 1 producing field i.e. PALMAR FIELD, having estimated recoverable reserve of 24.7 BCF Gas and 0.87 MMBBL of condensate. GTLI already completed drilling of one well having 3500 m depth and expects to commence supply of 6 mmcfd. of "Natural Gas" and 120 bbl of "Condensate" from July 2009. The drilling of the 2nd well is in projects.
Jindal Petroleum Limited is also 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.
Jindal Petroleum is striving hard to achieve a revenue flow of about Rs. 1000 crores by the year 2010.
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