Reliance Industries Ltd would start production from KG basin from June 2008, said V K Sibal, director general, Director General Hydrocarbon.
"I have seen Reliance's preparations for the production and can confirm that the first gas will flow from KG basin from June 2008," he said.
Sibal said the company would be producing 40 mmscmd (million metric standard cubic metres a day) of gas from KG basin, or more. RIL will soon be submitting its revised development plan for KG blocks, in which it is expected to show higher production potential. "The production could go up further to as high as 60 mmscmd or even 80 mmscmd of gas," said Sibal.
Talking to Business Standard about RIL production from KG basin, Arun Kumar Sethi, chief geologist and technical advisor to DGH, said RIL would not just be ready for production but also with the pipeline network for most parts of the country.
Sethi said RIL was operating in deep water, and was encountering a different rock formation compared with Gujarat State Petroleum Corporation.
GSPC, another major KG basin player, has encountered tremendous problems in adjoining block in KG basin and had to reschedule its production programme from 2008 to 2009.
According to Sibal, GSPC has been operating in an extremely hostile conditions with temperature as high as 4,500Fand pressure as high as 5,000 PSI.
This has made it difficult for DGH to take a call on proven gas reserves in Deendayal block being explored by GSPC.
"This is the reason why so far we have not certified GSPC's claim of 20 trillion cubic feet of gas reserves in its block in KG basin and advised it to wait for the outcome of its latest well 'KG 15'."
GSPC has reached 5,000-metre depth in well KG-15, which is expected to drill 600 metres more before submitting its outcome. Sibal said once the outcome of KG15 was available, GSPC would submit its development plans, and based on that DGH would certify the KG basin claim of GSPC.
RIL and GSPC together have claimed over 34 TCF of gas reserves in KG basin and these estimates are expected to go up further as RIL is revising its development plans, while GSPC is yet to submit its plans for KG basin.
According to the estimates of energy sector observers, the proven reserves could be as high as 50 tcf or more, as both RIL and GSPC have a large piece of acreage in the block still left unexplored. "I can confirm that GSPC is sitting on a goldmine," Sibal said.
