Reliance submits dev plan for 8 more KG block discoveries

NEW DELHI : Reliance Industries has submitted development plan for eight more gas discoveries in its prolific eastern offshore KG-D6 block.

"The discoveries are adjacent to the Dhirubhai 1 and 3 gas fields that are currently under development," said Canada's Niko Resources, which is Reliance's junior partner in KG-D6.

While Dhirubhai-1 and 3 discoveries are expected to start production by end September, it is intended that the eight satellite discoveries would be tied back to the Dhirubhai-1 and 3 facilities.

Numerous other prospects have been identified in deeper water areas of the block where further upside potential would be evaluated, Niko said.

Reliance is investing US $ 5.2 bn in bringing to production Dhirubhai 1 and 3 fields, with initial output pegged at 40 mn standard cubic meters per day that would double in one years time.

Of this, US $ 3.28 bn has already been invested by June 30, it said. "Fourteen of the planned 18 Phase-I wells will be tied in after start-up," it added.

Reliance would also start pumping out from the MA oil field in the same block within a months time. "The field is estimated to have a peak oil production rate of 40,000 barrels per day."

The company is investing USD 2.234 bn in developing the MA oil fields in the predominantly gas-rich block.

Niko has 10 per cent stake in the 7,645 sq kms KG-D6 block. Reliance is the operator with 90 per cent interest. The block was awarded to Reliance-Niko in India's first international bid round in 1999.

"Development of the Dhirubhai 1 and 3 natural gas fields and the MA oil field is substantially complete and exploration is ongoing on this block," Niko said.