The partners, Reliance Industries and Niko Resoruces have plans to drill up to two more wells on the block before appraising the discovery.
Twenty-five developmental wells would be drilled in the block to sustain production of 40 million standard cubic meters of gas per day. The development cost would come to around 800 million dollars. Another 500 million dollars would be required to lay pipelines for transporting gas to consumption centers. Aker Kvaerner has been appointed as a consultant to conceptualize and prepare a plan to develop the gas find," according to sources.
Meanwhile, Reliance is gearing up to drill exploratory wells in Mahanadi basin offshore block MB-OSN-97/2 and Gujarat shallow water block GK-SNJ/1. Extensive seismic surveys have pointed to the presence of oil reserves in Mahanadi basin block while gas reserves are indicated in the Gujarat block.
Reliance owns at 90% interest in the block and Niko Resources holds the remaining 10%.
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