The Hindu Business Line : Reliance sees hydrocarbon prospects in new KG block

Exploration plans
RIL is the operator of D4, which was won under the first round of NELP.
It has sought an extension of six months to further evaluate the surface area of the block.

Richa Mishra

New Delhi, Aug. 19 Lady luck seems to be smiling once again at Reliance Industries Ltd’s (RIL) exploration efforts in Krishna Godavari (KG) Basin. Indications are that the company may see good hydrocarbon prospects in its D4 block off the East coast.

The company’s earlier attempts in the block were not successful. Sources told Business Line that RIL had drilled two wells in the block with little luck. The company started drilling a third well in the block from July 16, whe re it has also completed initial technical tests, which have shown encouraging results.

Further Prospects

Though the company remained tight-lipped on its exploration activities in the block, indications are that at the recent meeting of the block’s management committee, which has Government nominees (Directorate General of Hydrocarbon’s representative), RIL has informed them on undertaking a second phase of testing.

Subsequent to the initial modular dynamic testing (MDT), the company is set to enter the next phase of testing — drill stem testing (DST) in the block KG-DWN-98/1 (D4). Sources said that the DST is to begin in the next few days.

While a MDT can be undertaken even as the drilling activity is going on, the DST is a slow test where the fluid is brought to the surface through a pipeline, industry sources said. The DST shows the extent of hydrocarbon in the well.

A MDT is conducted only when there are signs of hydrocarbons in the well, industry sources said adding that a company would not spend millions of dollars if there is no prospect.

While a MDT can be completed in six hours, a DST normally takes up to 15 days. Depending on the further prospects, a contractor goes in for a repeat DST.

The water depth is 562 metres.

Exploratory Activity

RIL is the operator of D4, a block which was won by the company under the first round of New Exploration Licensing Policy (NELP). It has 100 per cent interest in the block. The D4 block is close to RIL’s prolific D6 block. The original area of D4 was 10,810 sq km. Subsequent to releasing 25 per cent of the contract area at the end of phase one of the exploratory activity to the Government, the company now has 8,100 sq km.

The drilling of the third well in the block was beyond what was prescribed for the company under the minimum work programme. The company had got extension for the block due to statutory delays. The second phase of exploratory activity in the block expires on September 18, and RIL has sought an extension of six months, up to March 17, 2008 to further evaluate the surface area of the block.

After completing its drilling activity in the Cauvery Basin, RIL had deployed its rig Actinia in the block. RIL, with 82 per cent of its Indian acreage in deepwaters, is pursing aggressive exploration plans.