Adani Welspun makes ‘significant’ gas discovery off Mumbai coast

Adani Welspun Exploration Ltd. (AWEL), a joint venture between the Adani Group and Mumbai-based Welspun Enterprises Ltd, announced its first ever gas discovery in a NELP-VII block Tapti-Daman Sector of Mumbai Offshore basin.

Known as MB-OSN-2005/2, the 714.6 block is located in an area where production is already underway by other operators.

The block lies between three ONGC blocks — MB-OSN-2005/1, MB-OSN-2005/5 and MB-OSN-2005/6. As such, the government of India company had tried to buy the Adani Welspun block as well. ONGC has several gas producing assets in the region, and the AWEL’s block is part of a well-studied zone of gas-rich area.

Speaking on the discovery, Sandeep Garg, MD AWEL, said, ”In addition to being value accretive for the Company, this discovery could be a significant breakthrough for our nation given India’s focus to nearly triple the share of natural gas in its energy mix by the end of this decade.”

AWEL holds 100% participative interest (PI) and is the Operator of this Block, said an intimation from the company.

AWEL is a joint venture of Ahmedabad-based Adani Group and Mumbai-based Welspun Group undertaking the upstream oil & gas business.

In this JV, Adani Group holds 65% through its flagship company Adani Enterprises Limited (AEL), while Welspun Group holds 35% through Welspun Natural Resources Pvt. Ltd., a wholly owned subsidiary of its flagship company Welspun Enterprise Limited (WEL).

“The pay zones and flow rates encountered have exceeded the company’s initial estimates,” Adani Welspun Exploration said.

“With the information gleaned from adjoining fields/areas, this discovery is of substantial significance for both the company and the Nation. AWEL was awarded the block under the New Exploration Licensing Policy VII bid round.

“Early indications pointed to the occurrence of gas-bearing reservoirs within the sandstone reservoirs of the Mahuva and Daman formations.”

It said the drilling of the current well in March 2021 confirmed the presence of “substantial quantities” of gas and condensate in the Block.

Out of the three potential zones identified during drilling, two objects tested by Drill Stem Testing (DST) flowed substantial gas and condensate to the surface. Object-I (3m), a clean sandstone reservoir, flowed 9.7 million standard cubic feet per day (mmscfd) of gas along with 378 barrels/day of condensate through a 28/64“ choke at a flowing tubing head pressure (FTHP) of 2659 psi. Object-II (15m), another thick clean sandstone reservoir, flowed 9.1 mmscfd of gas along with 443 barrels/day of condensate through a 28/64“ choke at a FTHP of 2566 psi.

AWEL is also the operator with a 100% participative interest in the adjacent Discovered Small Field B-9 Cluster.

“The proximity of these two prospective Blocks will enable AWEL to synergise and optimize development of both the blocks,” Garg added.

AEL & WEL are listed on various Stock Exchanges.

AWEL holds key operated and non-operated assets in Mumbai Offshore & Gulf of Kutch in the Western Offshore basin.