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Rediff.com  » Business » RIL strikes 2 more gas reserves in KG basin

RIL strikes 2 more gas reserves in KG basin

May 27, 2009 17:59 IST

After D6 in Krishna Godavari basin, Reliance Industries has struck big in two nearby blocks with estimates putting in place natural gas reserves at 20 trillion cubic feet.

D-3 and D-9 blocks in the same KG basin may hold 9.5 Tcf and 10.8 Tcf of gas reserves respectively, UK-based Hary Oil and Gas Plc said.

Hardy, which cited estimates by independent consultant Gaffney, Cline and Associates, has 10 per cent stake each in the two blocks where Reliance is the operator with 90 per cent interest.

D6, which may hold upto 50 Tcf of gas reserves, began producing last month and is slated to double India's natural gas production by year end when it reaches 80 million cubic meters per day.

"The two discoveries on D3 in conjunction with the acquisition of risk mitigating technologies and geotechnical studies have resulted in the upward revision of the perceived Geological Chance of Success on both of our Krishna Godavari Basin blocks," chief executive Sastry Karra said.

GCA estimated the reserves based on two gas discoveries on the D3 block which have been named Dhirubhai 39 and 41, and extensive gelogical and geophysical work.

"This work includes over 2,000 square kilometers of new 3D seismic data on D3 and Pre-Stacked Time Migration 3D seismic data processing and a Constrained Source Electro Magnetism Survey on D9," the statement said.

In addition to undertaking to validate prospects identified by the joint venture, GCA employed a play-based exploration methodology on the D3 block to address both the current prospect inventory and the 'yet to find' resource potential.

In D3, GCA estimated 9.5 Tcf of inplace reseves. "This includes identified prospects and leads and a number of postulated prospects based on the play area and field size distribution," it said.

Gross risked Best Estimate Prospective Resources in block D9, comprising identified prospects/leads, is estimated, by GCA, at 10.8 Tcf and 143 million barrels of oil.

"The report confirms the significant hydrocarbon potential of our exploration assets in the emerging world class petroleum system of the Krishna Godavari Basin in India," Karra said.

The two blocks were awarded to Reliance and Hardy under the fifth bid round of New Exploration Licensing Policy in August 2005.

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