BG India signs production sharing contract for deepwater block in Mumbai basin

MUMBAI: BG India has signed a Production Sharing Contract (PSC) with the Government of India for a deep-water block MB-DWN-2010/1 in the Mumbai basin on the west coast of India, offered under the NELP IX bidding round. BG India (50% interest) is the Operator for this Block and BHP Billiton holds the remaining 50% interest in this agreement.

Located about 350 kilometres offshore from Mumbai, Block MB-DWN-2010/1 is a large, deepwater block and covers an area of 7,963 square kilometres in water depths varying between 2,900 to 3,200 metres. This Block represents BG India’s first deepwater operated exploration license on the west coast of India.

This new agreement will build upon BG India’s existing exploration portfolio in India. BG India President and Managing Director, Shaleen Sharma said: “We are very pleased that the final approval for this Block has come through. This latest agreement builds on BG Group’s success in India so far, and we will continue to strengthen our business here. As always, we look forward to working with the Indian government to enhance domestic supplies to meet the country’s ever growing energy requirements.”

The company said, “BG India will begin work shortly on the Block and will actively engage with the relevant governmental bodies to secure the clearances required to carry out this work. BG India plans to undertake preparatory work and seismic surveys in order to capitalise on the weather window available post-monsoon 2012.”