CAG slams GSPC for Rs 5,000cr loss
CAG slams GSPC for Rs 5,000cr loss
TNN Mar
28, 2012,
GANDHINAGAR:
The Gujarat State Petroleum Corporation Limited (GSPC), the most precious of
all Gujarat PSUs, has come under severe criticism from the Comptroller and
Auditor General (CAG) in a damning report which a worried Narendra
Modi government intends to table in the state assembly only on the last
day of the budget session on March 30. The idea is to avoid uproar from the
Opposition which has often been critical of the inflated claims of Modi about
GSPC's gas find in the Krishna-Godavari (KG) Basin and the tendency of
corporates and the political establishment to milk the PSU for their own ends.
The final CAG
report, a copy of which is available with TOI, has slammed the losses running
into nearly Rs 5000 crore. An entire chapter running into 37 pages is dedicated
to GSPC.
The CAG has observed that GSPC with its consortium submitted bid for acquiring KG block "without properly assessing related technical and financial issues." As a result, it said, against the estimated drilling cost of US $ 102.23 million and the total depth committed of 45,348 meters in the minimum work prog ramme (MWP), the actual drilling cost incurred was US $ 1302.88 million (Rs 5,920.27 crore) and the total depth drilled was of 77,395.07 meters.
The report
says, "The main reason for the incorrect estimation was adoption of
deficient geological model prepared by a joint venture (JV) partner, Geo Global
Resources Inc., Canada (GGR). The Company on the ground that GGR was a
technical expert, admitted GGR in the JV without taking any financial
contribution from it. As a result, the company incurred GGR's share of US $
175.07 million (Rs 780.81 crore) towards the exploration cost and suffered loss
of interest of Rs 104.14 crore during 2007-11, states the report.
The CAG found
it "unreasonable" that a time of 14 to 106 months was taken (during
2006-11) for completing the environment impact studies (EIS) in eight out of
nine domestic blocks where the company was operator. Besides, against the
estimated drilling rate per day of 27.76 meters, the actual rate was 22.49
meters in drilling 16 wells in KG offshore block between July 2004 and April
2010. This resulted in avoidable expenditure of Rs 180.91 crore.
The company
incurred total expenditure of Rs 104.29 crore on drilling wells without
obtaining approval of Government of India for the field development plan (FDP).
In absence of necessary approval, the said expenditure could not qualify for
recovery.
During
2006-11, the total revenue from trading of gas was Rs 19,245.39 crore and the
revenue from sale of its own production of gas and oil was Rs 1,563.63 crore
which indicated that GSPC was focusing mainly on trading rather than production
activity.
CAG- GSPC $2Trilion Oil Hoarding & RIL Theft -
Ambani + Modi Conspiracy
June14, 2012
Honorable Prime Minister
Dr. Manmohan Singh
South Block
New Delhi 110011
Copy Honorable Members of Parliament,
Respected Sir,
I have been reporting of
Hoarding & Exorbitant capitalization Oil & Gas by RIL and GSPC based on
Media Reports and from Annual Reports of Operators for 4-5 years regularly.
GSPC Deen Dyal Discovery $2Trillion
Sir,
1.] CAG
had confirmed there is over 18,303.7 MBbl of Oil plus gas in KG Basin called
Deen Dyal Field discovered by GSPC in June2005 this alone is worth $2Trillion
in addition to about $2Trillion plus Oil Equivalent of Gas in RIL operated KG
D6. This makes just two discoveries worth $4Trillion. There are 3 more similar
discoveries by ONGC and RIL also.
Expected Production $200b Per Year
2.] Sir, normally Oil & Gas
discoveries are commercialized over 12-20 years. Thus $4 Trillion Oil & Gas
of KG D6 and Deen Dyal annual production rate ought to be $200b annually. The
delay therefore has cost us $500b to even $1000b considering both discoveries
are very close to sea shore and didn’t require much complicated plumbing. In
fact both GSPC and RIL fields are just adjacent to each other.
Just 15
Sq.km and 40 sq.km Exploration Area Commercialized in 78 Blocks Over 500,000
sq.km area Allocated to GSPC and RIL.
India could have
been Oil Exporter By Now.
Sir,
3.] Deen
Dyal discovery is just in 15 sq.kilometer area when both GSPC and RIL together
has acquired over 5,00,000 sq.km 53+25 Blocks in India.
GSPC
Drill Rate Was 22meter Per Day – Record 341 Meter Per Day
Sir,
Here you can see that Transocean Drilled
12,289 meters in 36 days. This is 341 meter per day. Thus Capitalization Was
Over 10 Times.
HOUSTON, May 21, 2008 (PRIME
NEWSWIRE) -- Transocean Inc. (NYSE:RIG) today announced that the Transocean
jackup GSF Rig 127 set a world record for the longest extended-reach well ever
drilled at 40,320 feet (12,289 meters) MD (measured depth) with a 35,770-foot
(10,902-meter) horizontal section. The well was drilled offshore Qatar
in 36 days and incident-free. The new record of 7.6 miles is also the first
well in the history of offshore drilling that exceeds 40,000 feet (12,191
meters). The well surpasses by approximately 2,000 feet the prior extended-reach
record of 38,322 feet (11,680 meters) MD set by another drilling contractor
with a land rig drilling at Sakhalin
Island earlier this yea
DELIBERATE DELAYS & HOARDING
4.] Sir CAG had endorsed when $2Trillion Oil was in place
GSPC was deliberately slow in Commercializing Deen Dyal Discovery of 2005.
Theft of GSPC Oil By RIL
5.] Sir
CAG has Confirmed RIL was Stealing
GSPC Oil Worth $2 Trillion in Criminal Conspiracy ‘CAG - Reliance Industries
Limited (RIL) a private sector enterprise, installed Control and Riser Platform
unilaterally in the part area of KG block licensed to the Company on which no
other operator has any right without the consent of the Company/GoI.’ by
locating its Riser Platform in GSPC operational area POINTING TO DIRECT THEFT.
6.] Conspiracy
to Hire Deepest Most Expensive Rigs
It was deep rooted conspiracy to hire most expensive
rigs for relatively shallow waters close to sea shore was to Steal GSPC Oil by
RIL.
Ø
Sir Large Drilling Rigs
Can reach up to 12 kilometers Horizontally therefore RIL could extract all the
$2Trillion Oil in Deen Dyal Field of GSPC with Narendra Modi connivance.
Ø
Sir I was PUZZLED why DGH
had allowed ‘Most Expensive Rigs For Basically Shallow Depths.’ Drilling Rigs
hired could reach 35000 ft or to every inch of Deen Dyal Field holding $2
Trillion Oil of GSPC.
6.] Sir CAG
didn’t pull up GSPC when both KG D6 and Deen Dyal Field are adjacent to each
other it delayed drilling by almost 4 years and after discovery in 2005 another
4-6 years when prospects of discovery were 99% in 2001 itself.
7.] Sir I have also attached three dimensional
picture of RIL production platform that is in GSPC production area and most of
the Oil Wells in GSPC area are connected to RIL platform.
8.] Sir this RIL-GSPC Conspiracy Led To Failure
of the KG D6 that was basically Gas Discovery but RIL was through it was
‘Extracting Oil of GSPC.’
9.] Sir It Is Regretted CAG did not Computed
‘Real Production Losses that to my estimation exceed $500b’.
10.] Sir GSPC production plan is just $1.42b only
against $9.5b by RIL in spite Deliberately Slow Development.
Please order
CBI, JPC in to Grand Conspiracy to Hide World Biggest Loot and Conspiracy to
Over Throw UPA government.
Please
TAKEOVER $4 Trillion Oil & Gas Reserves Of RIL and GSPC and Hand Them to
ONGC.
11.] It is
also related that RIL after securing 4G broad Band with much greater capability
than India’s
Entire Telecom infrastructure Went On Hold. Copy of RIL press release Speaks
Loudly.
Thank you,
Faithfully
Ravinder Singh
Inventor & Consultant
INNOVATIVE
TECHNONLOGIES AND PROJECTS
Y-77, Hauz Khas, New
Delhi-110016, India.
Ph; 091-9910693464, 9718280435
Ph; 091-9910693464, 9718280435
Ravinder Singh* is a WIPO awarded
inventor specializing in Power, Transportation, Water, Energy Saving,
Agriculture, Manufacturing, Technologies and Projects.
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