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Reliance Industries Ltd. has discovered oil and gas in a shallow-water exploration block in the hydrocarbon-rich Krishna Godavari basin off India s east coast.

Reliance Industries Ltd. has discovered oil and gas in a shallow-water exploration block in the hydrocarbon-rich Krishna Godavari basin off India’s east coast, the country’s regulator said on Tuesday.

‘Reliance has made two separate discoveries in the block which have been certified by us,’ Director General of Hydrocarbons V.K. Sibal told Reuters.

He said Reliance struck oil in its Dhirubhai-24 well with a potential flow rate of 2,400 to 2,700 barrels per day, while both oil and gas were found in Dhirubhai-25 with flow rates of 3,012 barrels and 2.6 metric million standard cubic metres per day.

‘The commerciality of these two discoveries will be ascertained only after Reliance submits its test results to us,’ Sibal said.

Reliance shares rose 0.2 per cent to Rs 859.5 in a weak Mumbai market, on news of the discoveries in KG-OSN-2001/2, a 210 sq km (80 sq mile) block located between Reliance’s D-6 gas block and the producing Ravva field.

Reliance told the stock exchange it was in the process of exploring various blocks in the Krishna Godavari basin. |Read more Finance news.

‘If there is any certified commercial discovery of oil in any of its blocks, it will inform the regulatory agencies as well as its shareholders,’ the company said on Tuesday.

Seeking energy self-sufficiency, India has encouraged more private oil companies to invest in domestic oil and gas exploration and production.

Reliance, India’s largest private oil and petrochemicals firm, holds 100 percent of the KG-OSN-2001/2 block and is committed to drill four wells based on its production-sharing contract with the Indian government.

Reliance had so far invested $ 59 million exploring the block, compared with an initial target of $ 17 million, Sibal said.

Reliance is also developing its D-6 field, with a potential 14 trillion cubic feet of probable and possible gas reserves.

India, which imports 70 percent of the crude oil it consumes, produces barely half the gas it consumes and began importing liquefied natural gas (LNG) from Qatar last year.

Source : sify.com

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