RIL to invest $1.14 bn in Orissa gas fields

Reliance has submitted an initial development plan (IDP) for six gas discoveries in the NEC-25 block in Orissa, envisaging a production rate of 35-40 million standard cubic meters per day.

"We have received the IDP and will be discussing certain issues with Reliance. The development plan in all likelihood will be approved by April," the official said.

Reliance has not detailed a production schedule from the six discoveries where it estimates a total potential of 8.2 Trillion cubic feet, of which 1.1 Tcf is recoverable.

The investments projected in IDP would be for drilling 12 developments wells along with production facilities and the onshore receipt terminal, he said.

Gas from NEC-25 will flow after Reliance puts its coveted KG-D6 fields off the Andhra coast on production. Reliance is investing $5.2 billion in developing Dhirubhai-1 and 3, the first two of the 16 gas discoveries in the 7,645 sq.km KG-D6 block.

Initial output is likely to be 40 million standard cubic meters per day (mmscmd), which will be raised to 60 mmscmd in 2009-10.

Gas production from the block will peak to 80 mmscmd in 2011-12 and remain at that level till 2016-17, after which it will fall to 60 mmscmd in 2017-18 and to 40 mmscmd in 2018-19.

The official said Reliance is separately investing $2.284 billion to produce up to 40,000 barrels per day of crude oil from KG-D6 from March 2009.  RIL was previously targeting oil production from KG-D6 in February/March this year but has changed the schedule to keep the third quarter of 2008 deadline for first gas from the predominantly gas rich block, the official said.

The oil discovery is estimated to hold 68 million barrels of reserves and initial targeted production will be in the range of 30,000 to 35,000 barrels per day and planned plateau rate of 40,000 barrel per day.

Block KG-DWN-98/3, popularly known as KG-D6, was awarded to Reliance and its 10 per cent Canadian partner Niko Resources in the country's first round of international bidding of oil and gas blocks in 1999.

The official said Reliance was working overtime on its Krishna Godavari basin oil and gas field to meet the targets. A total of 17 of 18 planned wells for the development of Dhirubhai-1 and 3 fields are now drilled and awaiting completion.

Construction of the onshore terminal, laying the grid of natural gas pipelines and installation of the offshore facilities are all progressing to enable production from the Dhirubhai gas fields to commence in 2008, he said.