Reliance Finds Gas in Sixth Deepwater Well

Reliance Industries has made another natural gas discovery in the sixth well it has drilled in the Krishna Godavari Basin block, where it had earlier this year discovered 7 trillion cubic feet of gas reserves. "The sixth well, in the vicinity of the previous five wells where world class gas reserves were discovered, also encountered several gas zones. We are yet to appraise the discovery, which has the potential to revise upward the previous estimates of reserves in the KG-DWN-98/3 block," senior company officials said according to a report in the Press Trust of India.

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%.