The Hindu Business Line : Reliance begins exploratory activities in Cauvery Basin

New Delhi May 26 After striking success in the Krishna-Godavari Basin, Reliance Industries Ltd (RIL) has decided to move further south towards the Cauvery Basin for hydrocarbon discoveries. The company started drilling activities in its deepwater block located in the northern part of Cauvery Basin on May 15.

According to sources, this would mark RIL's first venture in the Cauvery Basin. The rig to start exploration activities reached the block CY-DWN-2001/2 (CY-D5) on May 13 and two days later drilling exercise was initiated, the sources told Business Line.

Stake details

Reliance Industries is the operator of the block. Initially, it was holding 90 per cent participating interest, with Hardy Exploration & Production (India) Inc holding the rest. Subsequently, Hardy pulled out and RIL now holds 100 per cent interest in the block.

The company has done the 2D seismic survey of the block. The water depth in the area of drilling is around 1,200 metres, the sources said, adding that the drilling activity in the area was delayed due to shortage of rigs. The area of the block is 14,325 sq km. The company has moved the rig that was deployed in Krishna-Godavari to the present location. The rig has been hired from Transocean.

ONGC presence

As for the prospects from the block, the sources said it was still premature to predict, as results would be evident only after drilling activity is completed. While this would be RIL's first entry in the Cauvery Basin, the state-owned exploration and production major ONGC is already producing from its onshore fields in the Cauvery Basin. In 2006-07 alone, ONGC produced 0.38 million tonnes of oil and 900 mmscm (million standard cubic meters) of gas from its Cauvery assets.

The Cauvery basin underlies the South-Eastern coast of India and the North-Eastern coast of Sri Lanka. According to experts, it is a passive margin rift basin and several small oil discoveries in the onshore blocks have been made, the first of which began producing in 1986.

Oil, gas blocks

As on date, RIL has 34 oil and gas blocks under its kitty and has made about 28 discoveries in India with a success ratio of 60 per cent. Recently, the company had announced two discoveries, one in the deepwater East Coast Block of Krishna Godavari basin and another in the shallow water West Coast Block GS01.

The company is hopeful of completing the gas sales agreement by July for its Krishna Godavari D6 block. It will stick to its plan to start production of natural gas from D6 block from mid-2008, the sources said. Reliance plans to produce 80 million cubic meters per day of gas from the block.

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