RIL reports significant gas find in KG-D6 block

Days after the oil sector regulator recommended taking back of three RIL gas finds for failure to conduct separate tests for their commercial viability, Reliance Industries Limited (RIL) and its partners BP and NIKO today announced a significant gas and condensate discovery in the KG-D6 block off the eastern coast of India.

The discovery, named 'D-55', which is close to a producing reservoir D1-D3, has been notified to the government and the management committee of the block, RIL said, adding that this discovery is expected to add to the hydrocarbon resources in the KG-D6 block.

The Directorate General of Hydrocarbons (DGH) had denied recognition to RIL's D-29, D-30 and D-31 finds in the KG-D6 block since February 2010 as commercial discoveries since RIL did not conduct separate tests as prescribed in the production sharing contract for confirming the gas finds.

RIL said the new well, KGD6-MJ1, was drilled in a water depth of 1,024 metres - and to a total depth of 4,509 metres - to explore the ''Mesozoic Synrift Clastic'' reservoir lying over 2,000 metres below the already producing D1-D3 gas finds.

Initial evaluation indicated gross gas and condensate column in the well of about 155 metres in the Mesozoic reservoirs, RIL said.

''In the drill stem test, the well flowed 30.6 million standard cubic feet per day (mm scf/d) and liquid rate of 2,121 barrels a day with a choke of 36/64" with a flowing bottom hole pressure of 8,461 psia suggesting good flow potential.''

However, RIL said, well flow rates during such tests are limited by the rig and well test equipment configuration and that it would now begin fresh appraisal to better define the scale and quality of the field.

''This is a successful outcome of the combined exploration efforts of the joint venture partners with the active support of the GoI. We shall embark on the appraisal programme in the next few months in order to evaluate the options for developing this discovery,'' PMS Prasad, executive director, Reliance Industries Limited, stated.

''The discovery demonstrates the effective technical co-operation between the partners, allowing us to make a new and significant discovery within KG-D6. It follows an 18 month drilling time-out and detailed geoscience work that has re-focused our India exploration programme and delivered this early success,'' Mike Daly, executive vice president, exploration at BP, commented.

''We congratulate our partners and the Government of India as co-operation in an event like this shows what good can be created for the energy sector and most importantly, for the people of India,'' Edward Sampson, chairman, president and CEO of Niko Resources Ltd, stated.