Reliance drills dry hole in KG block
Reliance Industries Ltd has drilled a dry hole in its prolific block D6 in the Krishna Godavari basin off the Andhra Pradesh coast.
By PTI |
NEW DELHI: Reliance Industries Ltd has drilled a dry hole in its prolific block D6 in the Krishna Godavari basin off the Andhra Pradesh coast.
The MB-1 oil exploration well, which was drilled by the rig Deepwater Frontier to the total depth of 3,080 metres, did not find any hydrocarbon, said Niko Resources, RIL's minority partner in the block.
"However, the well has provided significant geological information, which would help in optimizing the development of the multiple Cretaceous oil prospects. Subsequently, the well has been plugged and abandoned," the Canadian company said.
RIL holds 90 per cent interest in the block, which holds in-place reserves of about 50 trillion cubic feet (tcf). Niko Resources has the remaining 10 per cent stake.
The MB-1 well was the 20th well drilled till date in the KG-D6 block. So far, it has resulted in 13 gas discoveries and one oil discovery. Two of these 20 were development wells.
Niko said the prospect of MB-1 well was structurally separate from the previous MA-1 oil discovery and its drilling results did not have any bearing on the reserves of the latter structure.
Reliance, which hopes to begin natural gas production from two initial discoveries by July 2008, is mulling an oil development plan based on the MA-1 find. First oil is targeted for mid-2008.
Niko said an application for commerciality has been submitted to upstream regulator Directorate General of Hydrocarbons and was expected to be approved shortly.
The MB-1 oil exploration well, which was drilled by the rig Deepwater Frontier to the total depth of 3,080 metres, did not find any hydrocarbon, said Niko Resources, RIL's minority partner in the block.
"However, the well has provided significant geological information, which would help in optimizing the development of the multiple Cretaceous oil prospects. Subsequently, the well has been plugged and abandoned," the Canadian company said.
RIL holds 90 per cent interest in the block, which holds in-place reserves of about 50 trillion cubic feet (tcf). Niko Resources has the remaining 10 per cent stake.
The MB-1 well was the 20th well drilled till date in the KG-D6 block. So far, it has resulted in 13 gas discoveries and one oil discovery. Two of these 20 were development wells.
Niko said the prospect of MB-1 well was structurally separate from the previous MA-1 oil discovery and its drilling results did not have any bearing on the reserves of the latter structure.
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Reliance, which hopes to begin natural gas production from two initial discoveries by July 2008, is mulling an oil development plan based on the MA-1 find. First oil is targeted for mid-2008.
Niko said an application for commerciality has been submitted to upstream regulator Directorate General of Hydrocarbons and was expected to be approved shortly.
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