Reliance Makes Another Deepwater Discovery

Reliance Industries has made another natural gas discovery in the deepwater Krishna Godavari Basin offshore India. The Directorate General of Hydrocarbons has informed the Petroleum Ministry that the discovery of more gas in the sixth well, 10 km due east of the edge of the first D6 discovery, has led to enhancement in the reserves estimates in the block from 7 tcf to 9 tcf. The DGH has also upwardly revised the plateau production from the block to 30-40 million standard cubic meters per day over a period of eight years from its earlier estimate of 25-35 mmscmd. The in-place gas volumes in first exploratory well, named Dhirubhai-I, is 4,100 billion standard cubic feet. In-place gas volumes in Dhirubhai-2 is 160 billion standard cubic feet and 3,500 billion standard cubic feet in Dhirubhai-3. The fourth well on the first structure could not be tested due to technical constraints.

The Discoverer 534 has moved back to the original discovery to drill a fifth well on that structure (cumulatively seventh in the block), sources said, adding it is expected that the rig will return to the eastern anomaly to drill 2-3 more wells. The well on the new anomaly flowed 41 million cubic feet per day of dry sweet gas. Integrated 3-D seismic and well interpretation confirms F1 was drilled on a distinctly separate anomaly from the original D6 discovery, which is estimated to contain more than seven tcf of gas in place.

Reliance is moving on a fast-track development program for Block D6, which could see first gas production as early as mid 2004, to satisfy local east coast market demand of about 300 million cubic feet per day. RIL expects to recover over five tcf of gas from the block. The partners in the block have committed to investing $145.75 million in the work programe for the KG-DWN-98/3 deep water prospect in three phases of oil and gas exploration spread over 6-7 years.

Partners in the block are Reliance Industries with 90% and Niko Resources with the other 10%.