RIL to drill six new wells in KG-D6 block this year

Reliance Industries, which has proposed to invest $1.5 billion more in developing satellite gas finds in the prolific KG-D6 block, will drill six wells this year.

"Six additional exploration/appraisal wells will be drilled this year," said Niko Resources, the junior partner in RIL-operated KG-D6 block.

Niko, which holds 10 per cent interest in the block, did not give any further details in the operational update it released today.

RIL has till date made 19 discoveries-- 18 gas and one oil--in deep-sea block KG-DWN-98/3 or KG-D6. Of these, it developed Dhirubhai-1 and 3 gas fields in the first phase at an investment of $8.836 billion.

It has now proposed to invest another $1.5 billion in bringing to production four satellite finds in the block.

Dhirubhai-1 and 3 fields, which began gas production in April last year, hold 10.03 Tcf of reserves and are currently producing about 60 million standard cubic meters per day. The peak output of 80 mmscmd likely this year, would double gas availability in the country.

The Mumbai-based firm had in July 2008 proposed to develop 9 discoveries adjoining these two giants at a cost of $5.91 billion. But after more techno-commercial viability studies, it decided to narrow down to four finds that can be put to production in next 4-5 years.

RIL on December 29 submitted a field development plan (FDP) to the Directorate General of Hydrocarbons (DGH) for the four discoveries that it estimates hold 0.6 trillion cubic feet of recoverable reserves, sources said, adding 10 mmscmd of production is envisaged from these fields for six years.

Originally, the nine satellite finds were estimated to hold 2.2 Tcf of in-place gas reserves.

Niko said at least one additional exploration well is planned in the Mahanadi basin block NEC-25, off the Orissa coast. RIL has made six gas discoveries in this block.