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Our Bureau

Co holds 90% operating interest in both the blocks

Kolkata March 12 Reliance Industries today announced its 17th discovery in D-6 block in the coasts of Andhra Pradesh and seventh discovery in NEC-25 in Mahanadi basin in Orissa coast.

The new discoveries are re-christened as Dhirubhai 31 and Dhirubhai 32 respectively.

While the commerciality of the discoveries is under evaluation by the Director-General of Hydrocarbons (DGH), according to the company, "data available from logging & modular dynamic testing corroborates the presence of hydrocarbon in both the wells."

The discoveries brighten the prospects of escalation in production potential of both the blocks.

RIL holds 90 per cent operating interest in both the blocks. The rest is held by Niko Resources of Canada.

The company has already announced the presence of 11.3 trillion cubic feet (tcf) in-place reserve in two (Dhirubhai-1 and 3) out of the 17 discoveries made so far in D-6 block (KG DWN 98/3).

The development plan for NEC25 (NEC OSN 97/2) is under preparation.

High success rate

An RIL release said, the company has so far struck gas in 17 out of the 22 exploratory wells drilled in the KG basin block. The success ratio is understandably a clear 100 per cent in Mahanadi basin where the company has drilled seven exploratory wells so far.

Interestingly, while Reliance Industries is silent on the prospective size of reserves in Mahanadi basin, according to Niko Resources' independent engineering report prepared by Gaffney, Cline and Associates at the end of 2005-06, it indicates 8.2-tcf reserve in NEC-25.

Gas was first discovered in D-6 and NEC-25 blocks in 2002 and 2004 respectively.

While KG basin is already identified as India's most prospective gas zone, the gas-starved Eastern India has reasons to be elated over RIL's success story in Mahanadi basin.

Reliance Gas Pipeline Infrastructure Limited - a wholly owned subsidiary of RIL - has already announced a plan to set up the region's first gas pipeline from Basudebpur in Orissa to Haldia in West Bengal.

The project will support Reliance interest to take part in city gas distribution projects in the region.

Related Stories:
Reliance to scale up K-G basin production capacity
`RIL will begin gas output from K-G Basin by 2008'

More Stories on : Petroleum | Announcements | Reliance Industries Ltd

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