Reliance sniffs more gas in KG block

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By The Telegraph Online
  • Published 15.08.08

New Delhi, Aug. 14 (PTI): Reliance Industries Ltd has submitted a development plan for eight more gas discoveries in its prolific eastern offshore KG-D6 block.

“The discoveries are adjacent to the Dhirubhai 1 and Dhirubhai 3 gas fields that are under development,” said Canada’s Niko Resources, Reliance’s junior partner in KG-D6.

Production from Dhirubhai 1 and Dhirubhai 3 fields is expected to commence by September-end. The plans are for the eight satellite discoveries to be tied back to the Dhirubhai 1 and Dhirubhai 3 facilities.

Numerous other prospects have been identified in the deep-water areas of the block where further upside potential will be evaluated, Niko said.

Reliance will invest $5.2 billion to bring to production the Dhirubhai 1 and Dhirubhai 3 fields. The initial output is estimated at 40 million standard cubic meters per day, and the output will double in one year.

The company has already invested $3.28 billion by June 30. “Fourteen of the planned 18 phase-I wells will be tied in after start-up,” Niko said.

Oil production

Generation of oil from the MA oilfield in the same block will start in a month. The field is estimated to have a peak oil production rate of 40,000 barrels per day. An investment of $2.2 billion has been earmarked for developing the oilfield.

Niko has a 10 per cent stake in the 7,645 sq km KG-D6 block. Reliance is the operator with a 90 per cent interest. The block was awarded to Reliance-Niko in India’s first international bid round in 1999.