Oilex of Australia has announced that it has struck huge reserves of natural gas in the Cambay Basin in Gujarat, in what is being dubbed as a big discovery after Reliance Industries' gas find in the KG basin and Cairn India's discovery in Rajasthan. “In-place reserves in the Cambay Basin block near Khambat town,160 km south of Ahmedabad in Gujarat, is 16-21 trillion cubic feet (tcf),'' Oilex Managing Director Bruce McCarthy said here. Of these reserves, 10 per cent or at least 1.6 tcf are recoverable. Initial gas production could be five million standard cubic feet a day, rising up to 50 mscfd by 2012-13.

The in place reserves are almost equivalent to what RIL has found in the KG basin fields. Mr. McCarthy said Oilex was looking to replicate Cairn India's success in using U.S. technology to produce gas from the on-land block by mid-2011. The Cambay field is a pre-New Exploration Licensing Policy (NELP) block that was originally awarded to the Gujarat State Petroleum Corporation (GPSC) and Canada's Niko Resources. Oilex stepped in upon exit of Niko. Oilex holds 45 per cent interest in the Cambay field while GSPC holds the balance.