Reliance Industries has stumbled upon significant gas reserves in the sixth well it has drilled in the Krishna-Godavari basin block where it had earlier discovered seven 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 in Mumbai on Tuesday.
The consortium of Reliance and Canada-based Niko Resources will drill one or two more wells in the block before appraising the find.
Twenty-five developmental wells would be drilled in the block to sustain production of 40 million standard cubic metres of gas per day, sources said, adding the development cost would come to around $800 million.
Another $500 million would be required to lay pipelines for transporting gas to consumption centres.
"We have appointed Kvaerner as consultant to conceptualise and prepare a plan to develop the gas find," officials said.
Meanwhile, Reliance is gearing up to drill exploratory wells in Mahanadi basin offshore block and Gujarat shallow water.
"Extensive seismic survey has pointed to the presence of oil reserves in the Mahanadi basin block while gas reserves are indicated in the Gujarat block," sources added.