Online BusinessRIL makes third discovery in K-G block
Likely to drill three additional exploration wells in the block before the end of 2010.
- As Stock markets rise, short sellers on the wrong foot - Sebi well within rights to act against RIL: MCA - Production contracts shouldn"t be tweaked by anyone: RIL - RIL discovers third gas reserves in KG basin - RIL not cooperating in mill takeover, says Bihar minister - Govt asks GAIL to assure gas supply to power projs
Reliance Industries (RIL) has announced its third successive gas discovery in a deepwater exploration block in the Krishna-Godavari (K-G) basin, which the company had bagged in the fifth round of the New Exploration and Licensing Policy.
RIL holds 90 per cent participating interest (PI) in the block with Hardy Exploration and Production India holding the remaining stake. The block is about 45 kilometres off the Bay of Bengal coast and covers an area of 3,288 square kilometres.
The discovery, named ‘Dhirubhai-44’, has been notified to the government and the Directorate General of Hydrocarbons. The potential commerciality of the discovery is being ascertained through more data gathering and analysis, RIL said in a media release. Drilling for exploration commenced on the block in 2008.
In February 2008, RIL made its first gas discovery in the same block and the discovery was named ‘Dhirubhai–39’. In April 2008, the company made its second discovery in the block.
RIL is likely to drill three additional exploration wells in the block before the end of 2010.
“The discovery supplements RIL’s understanding of the petroleum systems within the block. 3D seismic (data) has been acquired over the entire block area. Besides the above discoveries, several prospects have been mapped at different stratigraphic levels to fulfil the balance minimum work commitment of three wells,” the statement added.
A Mumbai-based analyst said, while the quantum of the discovery is not known, it will add to RIL’s income, as the company has struck gas for the third time in the block.
RIL is currently producing over 50 million standard cubic metres a day of natural gas from another block in the Krishna-Godavari. The company plans to produce 80 million cubic metres of gas from the block, called KG-D6, by next year, which will double India’s output of natural gas.
The RIL scrip gained 0.22 per cent at Rs 1,018.80 at close of Tuesday’s trade on the Bombay Stock Exchange.