Announcement of India Gas Flaring Eduction Project on June 27, 1991

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 91/113 Contact: Pastor B. Sison Tel: (202) 458-0344 INDIA: GAS FLARING REDUCTION PROJECT The following is information on a project approved by the World Bank's Board. DATE: June 27, 1991 WORLD BANK GROUP SUPPORT: World Bank loan: $450 million. The loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.73 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. TOTAL COST: $3.2 billion OTHER FINANCING: Asian Development Bank, $300 million; Export-Import Bank of Japan, $350 million; Export/suppliers' credits, $745.6 million IMPLEMENTING AGENCY: Oil and Natural Gas Commission ESTIMATED COMPLETION DATE: 1996 PROJECT DESCRIPTION: The objectives of the Gas Flaring Reduction Project are to: (a) eliminate the flaring of associated gas in the Bombay High oil field, improve the management of the Bombay High Reservoir in order to arrest the decline of oil production and optimize the ultimate recovery of hydrocarbons; (b) reduce energy shortages and improve the efficiency of energy use in India's Western Region; and (c) promote a greater involvement of the private sector in the oil and gas industry in India. The project consists of the following components: (a) construction of a process platform in the southern sector of the Bombay High oil field, with a processing capacity of 100,000 barrels of oil per day, 15 million cubic meters per day (MMCMD) of gas, and 140,000 barrels of water per day; the platform includes a 28-inch diameter, 78-kilometer pipeline to the BPB platform at South Bassein; (b) construction of a process platform in the northern sector of the Bombay High oil field, with a processing capacity of 60,000 barrels of oil per day, 6.8 MMCMD of gas, and 90,000 barrels of water per day; the platform includes an 18-inch diameter, 30-kilometer pipeline to the BHN-Uran gas trunk pipeline; (c) modifications of existing platforms; (d) construction of a 26- to 36-inch diameter, 142-kilometer gas pipeline from the existing platform in the southern sector of the Bombay High oil field to the Heera-Uran trunk pipeline; (e) construction of a 42- inch diameter, 255-kilometer trunk gas pipeline from South Bassein to iazira; (f) expansion of the existing Hazira gas terminal; (g) imple- mentation of measures in the Bombay High oil field to ensure proper reservoir management practices; (h) reservoir performance and management studies and training; and (i) implementation of measures to reduce environmental risks and enhance the safety of offshore operations.