RIL strikes more gas off India's east coast

Reliance Industries is on the verge of a 16th gas discovery in deep sea block D6 off the Andhra coast, and has made a sixth consecutive gas find in block NEC-25, off Orissa coast.

"Gas pay has already been identified in the shallow section of the (P-1A) well," said Niko Resources, the Canadian partner of Reliance in the block.

The P-1A well is currently being drilled to a total depth of 3,600 metres and reserves in the well, drilled on the newly acquired 3D seismic area, would be announced after completion and testing of the well.

"These very encouraging results from both the E-1 (the previous well) and P-1A wells confirm the potential of discovering large reserves on the new 3D seismic area," Niko said in a press statement.

After completion of the P-1A well, drilling will begin on the F-2 well, which is also located on the new 3D seismic, south of the F-1 discovery.

Reliance plans to begin producing 40 million standard cubic meters per day of gas from Dhirubhai-1 and Dhirubhai-3, two of the many discoveries made in the block, from 2008.

"The company is looking forward to continued drilling success on this block," said Niko, which owns 10 per cent in Block D6. The operator Reliance owns 90 per cent.

Reliace has completed drilling the sixth exploration well at NEC-25, resulting in the sixth consecutive gas find within the 1800 sq-km 3D seismic area, Niko said.

Reliance has mandated Gaffney, Cline & Associates to assess the reserves in Block NEC-25.

Niko said a second drilling rig capable of operating in deep water is being sourced. Currently, Transocean's 7000-foot water depth drillship Discoverer 534 is on contract to Reliance until December.

"This (second) rig is expected to be available for 120 to 150 days beginning in August or September 2005. This unit will be used to drill prospects identified on the new 3D seismic area," Niko said.

A third rig, capable of drilling in the deeper water depths on the prospects in the new 3D seismic area, has been contracted and will begin drilling in September 2006.