The Hindu Business Line : RIL delays exploratory activity in KG block D9

Snapshot
Reliance gets 2 more years for ecploration in KG basin thanks to recent Governemnt decision to merge Phase I and II for NELP III and IV.
The company has three rigs and by the first quarter of 2008 RIL hopes to get four more.
The two rigs, which had struck success for the company in Cauvery Basin have been moved to its other KG blocks.

Richa Mishra

New Delhi, July 29

Rig shortage has compelled Reliance Industries Ltd to delay its exploratory commitments for its deepwater (D9) block in Krishna Godavari Basin. The company plans to initiate its drilling activities in the block, which is adjacent to its prolific D6, before the year end.

Sources told Business Line, “Initially the company had plans to begin first phase of exploratory activities the block KG-DWN-2001/1 this month. Due to rig shortage RIL has decided to revise the dates. However, the geoscientist s have completed their work.”

As per the commitments, RIL has to carry out a drilling programme for four wells in the block.

This block was in the first exploration phase, which expired on April 2.

However, the recent Government decision to allow exploration companies to merge first and second phase of exploratory activities for New Exploration Licensing Policy (NELP) three and four has given RIL an additional two years (April 2009) to complete its activities.

Ten blocks

In fact, RIL has 10 blocks (including D9), which would gain because of this decision. The company has been awarded nine blocks under the third round of NELP and one in the fourth round.

Sources said, the company has already shot and processed two-dimensional and three dimensional seismic data for D9. As per the production sharing contract (PSC) for the block, the company has to spud the wells in two different stages. Currently, three rigs are available with the company and by the first quarter of 2008 RIL hopes to get four more.

KG-DWN-2001/1 (D9) block encompasses 11,850 square km of the Krishna-Godavari basin. RIL is the operator for the block. It had won the block in the third bidding rounds with Hardy Exploration Production (India) Inc holding a 10 per cent participating interest.

Subsequently, Hardy offloaded its stake and now RIL holds 100 per cent stake in the block.

Meanwhile, the two rigs, which had struck success for the company in Cauvery Basin have been moved to its other KG blocks, including the successful D6. RIL has also deployed a rig in KG-DWN-98/1, where it has already drilled two wells, which were dry.

The company is now drilling a third well in the same block.

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