As part of its diversification process, in 2008, the Group forayed into the oil and gas sector, operating under Jindal Petroleum Limited. The company has acquired 7 Oil & Gas blocks in different parts of the world, including five oil and gas blocks in Georgia and one in India. 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 has so far committed an investment of US$ 200 million (Rs. 1000 crore) and is working on several other projects in the sector.
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.
Jindal Petroleum is endeavoring to optimise 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 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.
website : www.jindalpetroleum.com
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