The Hindu Business Line : Reliance may take foreign partner for Cauvery asset

The successful Cauvery asset of Reliance Industries Ltd may see an international partner in the project. A senior RIL official said that “the time may be right for us now to consider a partner for our ultra deepwater assets.”

Sources said that international oil companies including Chevron have envisaged interest, and that the company is favourably considering the prospects.

According to the sources, RIL would prefer a partner who could offer technical expertise and has the capacity to share the financial risks as well as specialised manpower. The company would seek a partner only when the blocks reach development and production phase, the sources added.

Industry experts say that if RIL ropes in an international partner after hitting success in the blocks, the partner would have to come in at a premium.

The company has been successful in completing the drilling activities and striking hydrocarbon reserves in the East Coast including Krishna Godavari and the Cauvery basin. While the Cauvery block is ultra deepwater, there are some areas in Krishna Godavari which also fall into the category.

Understanding with Chevron

RIL already has an understanding with Chevron for possible collaboration in exploration and production activities.

As per the understanding, collaboration in the offshore part of the Krishna Godavari basin was not ruled out, including Chevron acquiring a participating interest in RIL’s D6 block.

Roping in an international partner is not something new for the exploration companies. State-owned ONGC has also entered into tie-ups with Petrobras, Norsk Hydro, and ENI, respectively, for their expertise.

Estimates of reserves

RIL, which plans to start production from its D6 block in the Krishna Godavari basin in the middle of next year, recently announced that it has found hydrocarbon reserves in its Cauvery block, CY-DWN-2001/2. The drilling activity has been completed in both the wells. There are two zones in the block; in the first zone as per the initial tests RIL has found 550 barrels per day of oil and one million cubic ft per day of gas, while in the second it has found 31 million cubic ft per day of gas and 1,200 barrels per day of condensate.

The company had deployed two rigs in the block – Deepwater Frontier and Actinia. The rigs have since been shifted to Krishna Godavari for undertaking development drilling. RIL has a total of 45 exploration blocks, of which it has surrendered 15 to the Government.

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