Reliance to start drilling exploration wells soon

Thursday, 04 December 2003, 20:30 IST
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NEW DELHI: Reliance Industries, India largest business group, plans to start drilling exploration wells from December 12 in the Krishna-Godavari Basin block, the site of last year's largest gas find. The company had stopped after drilling eight wells in the block, which is estimated to have around 14 trillion cubic feet of gas reserves and holds potential for supply of 60 million standard cubic metres per day of gas (MMSCMD), so as to scout for prospective off-takers, R.P. Sharma, president of Reliance's gas business, said here Wednesday. "We have already submitted our plan for drilling exploration wells to the Directorate General of Hydrocarbon (DGH) and hope to start by December 12," Sharma told IANS on the sidelines of the two-day Petro India conference here. Cairn Energy and state-owned energy major Oil and Natural Gas Corporation (ONGC) have also firmed up plans for beginning drilling activities later this month in the K-G Basin in the vicinity of the Reliance block. With prospects of more discoveries in the K-G Basin, Sharma stressed the need for India to maintain flexibility in sourcing of gas to make room for domestic supplies that would be far cheaper than imported energy fuel. "We have merely explored 20 percent of the area of the block and already established around 14 TCF of gas," Sharma told the meet organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) and the India Energy Forum. Reliance is keen to move on with the next step of drilling activities including drilling of development wells in order to start production of gas by 2006 and supply to potential consumers like state-owned National Thermal Power Corporation (NTPC). NTPC is currently examining bids for supply of three million tonnes of LNG per annum for four proposed power projects in western India. Aggregating 2,600 MW, NTPC has invited bids for supplies to begin in early 2007. The power major is currently in discussions with prospective suppliers. The exercise is likely to be completed by December 7, after which the bidders would be invited to have a re-look at the price offer and quote deviations. Sharma expects the exercise to be over by December end and to open the price bid by mid January. A major power player in Mumbai and Delhi, Reliance is also exploring the possibilities of using the gas from its K-G Basin for power generation to enhance supplies in the two metros and other regions. Also awaiting the government decision is a Reliance plan to set up pipeline infrastructure for supply of gas both to its own industries and other prospective consumers.
Source: IANS
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