RIL has another productive quarter

Offshore staff

MUMBAI, India -- India's Reliance Industries Ltd. has had another eventful quarter. The company announced success with its first well in the deepwater Cauvery basin off the east coast. This discovery is a first for the deepwater basin. The success of well CY-III-D5-A1 marks the beginning of a new vista of exploration in this basin, the company says.

During the quarter, Reliance made two additional discoveries, one with well KGD6-R1 in block KG DWN 98/3 (KG D6) in the Krishna-Godavari basin and the other with well GS01-B1 in block GS-OSN-2000/1 (GS01) in the Gujarat-Saurashtra basin. Reliance considers the latter a major breakthrough in the west coast.

The development of discoveries Dhirubhai 1 and Dhirubhai 3 in the KGD6 block are on schedule for gas production by the second half of fiscal year 2008-09. Reliance also is pursuing an exploration campaign in the KGD6 block. A development plan is being prepared, and fasttrack implementation of the Dhirubhai 26 Cretaceous oil discovery is progressing. A concept study has been completed, and a front-end engineering and design study is under way. Initial production is estimated at 30,000-35,000 b/d of oil during 2008-09, the company says.

In the past three months, Reliance completed the expansion plan of development (EPOD) for the producing Panna and Mukta fields, which resulted in additional production of 8,000 b/d of oil. The additional recovery over the life of the project is 18 MMbbl of oil and 74 bcf of natural gas, Reliance says.

The company is also on track with the new revised plan of development (NRPOD), which will add gas production for the nearby Tapti block. On commissioning, NRPOD is expected to result in an additional 5.7 MMcm/d of gas and 1,600 b/d of condensate.
The company also filed a declaration of commerciality with the Directorate General of Hydrocarbons for approval of a new discovery in southwest Panna

Reliance completed drilling on an exploratory well in shallow-water block NEC25 in the Bay of Bengal. With this discovery, the company has made seven gas discoveries out of eight wells drilled on the block. Further 2D and 3D seismic analysis and drilling of exploratory wells in the block are being planned.

The company says it will pursue an aggressive exploratory program over the next four quarters to explore available acreage. Drilling is proposed in 11 out of the 26 blocks (excluding new blocks from NELP-VI). Reliance also plans extensive seismic studies covering all major basins including seven blocks awarded in NELP-VI.

8/3/2007