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Rediff.com  » Business » RIL finds huge oil reserves in block D6

RIL finds huge oil reserves in block D6

Source: PTI
December 18, 2006 13:00 IST
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Reliance Industries Ltd has discovered huge oil reserves in its gas-rich D6 block in Krishna Godavari basin off the east coast, its minority partner Niko Resources of Canada has said.

"The MA-2 well has encountered the thickest hydrocarbon column discovered to date in D6," Niko Resources said in a release. Niko Resources has 10 per cent interest in the block KG-DWN-98/3, also known as D6. Reliance is the operator of the block with 90 per cent interest.

"MA-2 reached a target depth of 3581 metres and penetrated a gross hydrocarbon column of 194 metres consisting of 170 metres of gas/condensate and 24 metres of oil in the Cretaceous section," the release said.

MA-2 is located approximately 2-km from the previous MA-1 oil discovery well.

"Application has been made for the commerciality of the MA field and approval is expected to be granted in the near future. The full field development plan will be submitted after approval of the commerciality and the oil development is to be fast tracked with initial production targeted in the second quarter of 2008," it said.

The MA-1 well in June 2006 reached a total depth of 3783 metres and hit 26 metres of net oil pay and 72 metres of net gas pay.

Reliance has till date made about a dozen gas discoveries in D6 and put combined reserves in the block at around 50 Trillion cubic feet (Tcf). MA-2 is the second oil discovery on D6 after MA-1.

Niko said the Deepwater Frontier drilling rig has moved to drill development wells for the Dhirubhai gas development project.

An addendum to the Field development plan for the Dhirubhai 1 and 3 gas fields has been approved and provides for the gas production rate to be increased to 2.8 billion cubic feet per day with a corresponding phase-1 field development costs of $5.2 billion.

Commencement of production is scheduled for mid 2008. The approved field development plan of Dhirubhai 1 and 3 provides flexibility in the critical portions of the facilities to facilitate gas production to 4.2 BCF per day in future as and when additional reserves are added.

"Since the approval of the initial development plan of Dhirubhai 1 and 3 in November 2004, substantial additional work has been done to assess the overall hydrocarbon potential of the D6 block in general, and in the development area for Dhirubhai 1 and 3 discoveries in particular," the release said.

This work included the acquisition of an additional 7600 sq km of 3-D seismic, drilling and testing of additional exploratory wells, drilling and extensive coring of two development wells in the development area, along with various detailed technical studies by international consultants. As a result, the hydrocarbon potential has increased significantly.

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