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RIL first local firm to strike deep water gas

Savio G Pinto

Reliance Industries Ltd has struck gas at one of its deep water exploration blocks. It struck gas last week at KG DWN 98/3, off Vishakapatnam.

RIL is the first Indian private sector company to strike gas at any deep water exploration block. This is one among the 12 new exploration blocks bagged by RIL, under the NELP-II, along with Niko Resources of Canada, through competitive international bidding.

With a 90 per cent equity, RIL is the main operator of the block with the remaining 10 per cent held by Niko Resources.

The 12 blocks with Niko span a wide range of geological settings, from shallow to deep water blocks.

A Reliance spokesperson said, "It is not the company's policy to comment on rumours or speculation."

The extent of recoverable gas reserves discovered at the site is still being determined and tests are being carried out to determine this. However, according to sources, the find could be one of the largest discovered thus far in the region.

Together with the two blocks awarded earlier, Reliance is the largest exploration and production (E& P) player in the private sector with exploration acreage of 1,05,765 sq kms, off both the east coast and west coast of India.

Said an industry source, "Reliance's deep water block at Krishna Godavari has been under testing for sometime now. It is a good prospect that they have struck gas. In fact, Oil and Natural Gas Commission has three blocks on Krishna Godavari , KG OS DW, KG OS DW extended and KG OS DW/3."

Reliance has also acquired five exploration blocks from Tullow of UK. Reliance also holds 30 per cent interest in the development of proven oil and gas fields at Panna, Mukta and Tapti. British Gas holds 30 per cent equity and ONGC holds the remaining 40 per cent in these three oil and gas fields.

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