The Hindu Business Line : Reliance may face further delay in rigs deployment

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Kolkata Feb. 12 Reliance Industries may face further delay in deployment of rigs for development of the giant D-6 deepwater gas field in KG basin.

Reliance has already announced a plan to produce 80 million metric standard cubic metre of natural gas a day from D-6 beginning the second half of 2008-09 at an estimated cost of over Rs 23,000 crore.

According to the latest fleet update released by Transocean Inc on February 2, the deepwater floater Discoverer - 534, which was scheduled to join the drilling campaign in KG basin in June, will not be available before July.

This is over and above the three-month delay in deployment of the rig previously reported by Transocean. Discoverer - 534 will report to Reliance after a brief stay at Shell operations in Pakistan in June.

When contacted a Reliance spokesperson told Business Line that the delay in rig deployment would not leave major impact on the development plan of D-6.

"Gas will start flowing from the field on schedule," he said.

Reliance is currently pursuing drilling operations at the D-6 by fifth generation floater Deepwater Frontier hired at a daily cost of $320,000.

As per the original schedule, Discoverer 534 and fifth generation rig Deepwater Expedition were slated to join the company's operations in KG basin in April and December, respectively.

However, in January this year Transocean reported that the rigs would be available to Reliance in June 2007 and March 2008, respectively.

Reliance has booked both the rigs till 2010. While Discover-534 will cost the company $250,000 a day, Deepwater Expedition is hired at a cost of $375,000 a day.

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