RIL to begin production from KG-D6 block in Q3FY08

RIL to begin production from KG-D6 block in Q3FY08
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First Published: Thu, Jun 26 2008. 01 26 PM IST
Updated: Thu, Jun 26 2008. 01 26 PM IST
PTI
New Delhi: Reliance Industries Limited (RIL) will begin oil and gas production from its prolific eastern offshore D6 block in the third quarter of 2008 calendar year, the company’s junior partner Niko Resources of Canada has said.
Reliance is investing $5.2 billion to bring to production Dhirubhai-1 and 3 gas fields - two of the 18 finds made in the KG-DWN-98/3 (D6) block in Krishna Godavari basin. Alongside, it is also developing the MA oil field in the same block.
“Both oil and natural gas production is expected to commence in the third calendar quarter of 2008,” Niko said in its regulatory filing.
Volumes will ramp up to a targeted rate of 2.8 billion cubic feet per day (80 million standard cubic meters per day) of gas within first year of production. Peak oil output is seen at 40,000 barrels per day (2 million tons per annum).
On 25 June, the government had said that Reliance will pump 25 mmscmd gas from D6 from September and 40 mmscmd from March 2009.
“The wells and facilities are substantially complete,” Niko, which holds 10% stake in D6, said.
Niko said R1 exploration well in KG-D6 block added 2.2 trillion cubic feet of reserves, while proved natural gas reserves in Dhirubhai-1 and 3 fields have more than doubled to 9.2 Tcf. Proven plus probable gas reserves in the two fields has risen by 15 per cent to 13 Tcf.
For oil field development, Reliance and Niko are investing $1.5 billion, while in the second phase of gas development, the two firms would invest another $3.6 billion.
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First Published: Thu, Jun 26 2008. 01 26 PM IST
More Topics: Reliance Industries | Niko Resources | Oil | Gas | KGD6 |