Reliance strikes fresh gas in Godavari basin

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By OUR SPECIAL CORRESPONDENT in Mumbai
  • Published 15.05.07
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Mumbai, May 15: Reliance Industries has made two natural gas discoveries on the east and west coast of India.

On the east coast, gas was found at the the KG-D6 block in the Krishna Godavari basin. The KG-D6-R1 well is the deepest to be drilled till date and contained two gas-bearing zones.

This well is the 23rd exploratory well drilled in the block and has been notified to the directorate general of hydrocarbons (DGH) and authorities concerned as a new discovery — Dhirubhai 34.

Reliance is the operator of the block with 90 per cent interest, while Niko Resources of Canada holds the remaining 10 per cent stake.

The block was awarded to the consortium under the Nelp I round of bidding.

The block is estimated to hold in-place reserves of around 50 trillion cubic feet and oil reserves of one billion barrels.

RIL plans to begin gas production from the first two of the discoveries made in the block in the second half of 2008.

The second discovery was made in the GS01 B1 block in the Gujarat-Saurashtra basin off the west coast. This well was notified to the authorities as a new discovery — Dhirubhai 33. The GS01 B1 well is the company’s 51st exploratory well and was drilled at a water depth of 78 meters and to a total depth of 2,282 meters.

The shallow water block was awarded to the consortium of RIL and Hardy Exploration of the UK in the Nelp II round of bidding. RIL is the operator with 90 per cent interest and Hardy Exploration has the remaining 10 per cent.

RIL said it was evaluating the commercial viability of these discoveries.

“These discoveries demonstrate the potential of the blocks in the Krishna Godavari basin and opens up a new corridor in the Gujarat-Saurashtra basin for future exploration,” the company said in a statement.