Reliance to invest $1.14 bn in Orissa gas field

Posted by Oil Tycoon

January 21, 2008

NEW DELHI: Reliance Industries will invest $1.139 billion in putting to production the gas fields it has discovered off the east coast, a DGH official said.

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 dollars to produce up to 40,000 barrels per day of crude oil from KG-D6 from March 2009.

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