India
Strategy
The development strategy of Gazprom as a global energy company is targeted at creating the entire process chain from hydrocarbon production to marketing on the new markets relying on the production capacities located beyond Russia.
Within this strategy the Company maintains cooperation aimed at developing hydrocarbon resources in Venezuela, Vietnam, India, Bolivia, Algeria, Libya and the Caspian Sea as well as studies the possibility of participating in oil and gas projects in Egypt and Pakistan.
Cooperation
The Indian Oil and Gas Corporation (ONGC Group) is the largest state company in terms of hydrocarbon proven reserves and production. The Gas Authority of India Limited (GAIL) is the leading gas transmission and distribution company.
On October 3, 2000 Gazprom and GAIL entered into the Production Sharing Agreement on Block 26 in the Bengal Bay with the Government of the Republic of India The Agreement stipulates hydrocarbon prospecting, exploration, production and marketing.
On December 3, 2004 Gazprom and GAIL signed the Agreement of Strategic Cooperation. Pursuant to the Agreement, the key cooperation directions are the study and implementation of projects for natural gas supply to India as well as the intensification of joint efforts at Block NEC – OSN – 97/1 (#26) located in India’s offshore area, in the northern Bengal Bay. The Agreement also stipulates cooperation between the companies in the oil sector.
On February 21, 2005 Gazprom and ONGC Group signed in Moscow a Memorandum of Understanding. The Memorandum envisages the cooperation in hydrocarbon processing, oil and gas chemicals supply to Asia-Pacific and South Asia, trunkline construction and operation, sci-tech cooperation deepening, and staff development.
Block 26
At present, Gazprom's share in the project accounts for 100 per cent. The aggregate reserves are estimated at 375 million tons of fuel equivalent.
In 2007 construction of the NEC – FA – 5 well (4,338 m deep) performed by Galaxy Driller drilling rig was finished. Combined lithologic and stratigraphic traps were identified within the FA – 5 prospective area. The decision was taken to transfer to Phase III of the Exploration Program (2 D seismic survey in the block’s western area, drilling of one exploration-appraisal well NEC –W – 1).
Oil- and Gas-Bearing Potential
Fifth-largest in Asia after Indonesia, Australia, Malaysia and China, India's proven natural gas reserves account for 1.06 trillion cubic meters (as of January1, 2008), with 70 per cent of the reserves located in the Bombay High basin and the state of Gujarat.
Over 2007 India produced 30.2 billion cubic meters of natural gas. The entire amount of extracted gas is consumed domestically. In India's energy balance natural gas makes up 9 per cent (oil – 31 per cent).