Indus Gas Completes SGL Field Production Facility

28th Jun 2010 08:20

LONDON (Dow Jones)--Indus Gas Limited (INDI.LN), an oil and gas exploration and development company with assets in India, Monday announces the completion of the production facilities for the first Phase of contracted supplies of seven million standard cubic feet per day, or MMscfd, gas from its SGL Gas Field to GAIL India Ltd. (532155.BY). MAIN FACTS: -Also received a production mining lease for 176 square kilometers area of the SGL Gas field from the Indian Government. -The SGL Field is located within Block RJ-ON/6 in Rajasthan. Indus holds a 63% interest in the SGL Field, with ONGC holding 30% and Focus Energy Limited 7%. -Indus has a 90% interest in the remainder of Block RJ-ON/6. -Contracted with GAIL to initially supply 7 MMscfd of gas (first Phase), on or around the second quarter of 2010. -The quantity supplied is contracted to increase to around 33.5 MMscfd (2nd Phase) from the second quarter of 2011. -For the second Phase supplies, the Company is required to install a Carbon Dioxide removal plant to remove around 18% of CO2 from the gas, along with the additional production facilities and production wells so as to enhance the gas production capacities to meet contractual requirements of the second phase. -RRUVNL is installing a new power plant of 160 MW capacity for the same. -The Company has largely completed the tendering process for the 2nd Phase production facilities and will commence the ordering process in the third quarter of 2010. -RRVUNL has already started construction of the new 160 MW power plant. -Shares at 0717 GMT unchanged at 495.0 pence. -By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires June 28, 2010 03:20 ET (07:20 GMT)