Reliance Industries has returned to the government three out of the seven exploration blocks it had won in Kerala-Konkan basin off Tamil Nadu, as it did not find commercial quantities of hydrocarbon.
Reliance had carried out the minimum work obligation in block KK-OSN-97/2 (awarded to the company in first round of New Exploration Licensing Policy), KK-DWN-2000/1 and KK-DWN-2000/3 (NELP-II) and decided not to enter the subsequent phase, a company official said.
"We did not find anything exciting, so we surrendered the blocks as per the provisions of the Production Sharing Contract," he said, adding that the company was in the process of submitting all original and copies of data pertaining to these blocks.
The company, which had made 37 discoveries in nine of the 37 blocks it had won in various rounds, saw poor hydrocarbon prospectivity in the Kerala-Konkan basin and had applied to the government for research and development status to these blocks to better understand the volcanic basin.
However, the same was denied by the government, he said.
The poor prospectivity of the basin was evident from NELP-VI round when the basin could not attract any bids for two blocks and a third block was awarded on a single bid.
The official said NELP-III block, KK-DWN-2001/1 and KK-DWN-2001/2 were due to be returned in October 2007, but sector regulator DGH announced a drilling moratorim policy.
The blocks are being covered under the policy despite it coming into effect from January 1, 2008 as Reliance lost 341 days in each of the blocks due to delays in getting past data and environmental clearances.
These blocks would be covered under drilling moratorim policy lasting till December 31, 2010, he added.
