RIL gas reserves treble to 35.4 tcf

Niko's estimate makes D6 India's largest such block.

Natural gas reserves in Reliance Industries' prolific D6 Block off the east coast have nearly trebled to 35.4 trillion cubic feet (tcf), making it India's largest such block.

Niko Resources of Canada today said an independent engineering report prepared by Gaffney, Cline and Associates at the end of 2005-06 had estimated around 200 per cent increase in the natural gas in-place for the D6 Block, from 11.9 trillion cubic feet in 2002 to 35.4 trillion cubic feet.

A Niko statement said Gaffney had further estimated 8.2 TCF reserves in Block NEC-25, off Orissa coast. NEC-25 has the same shareholding structure as D6.

Reliance is investing $2.49 billion in bringing to production Dhirubhai-1 and Dhirubhai-3 discoveries, out of the 18 made so far, for an output of 40 million standard cubic metres per day from mid-2008.

Niko said six gas discoveries in the NEC-25 block in the Mahanadi basin off Orissa coast had been declared commercial and an oil discovery was made in well MA-1 in D6 Block. Another gas discovery was made in A-1A.

"This new discovery and increased reserve estimates further confirm the D6 Block's reputation as a world-class petroleum province," it said.

Three rigs would be used to develop and evaluate the oil and natural gas potential of D6 in the current financial year.

Niko said development of the natural gas discoveries in the D6 Block continued on schedule, with commercial production expected to begin in June 2008.

For NEC-25, development of the natural gas fields would commence next year, with commercial delivery to the Kolkata natural gas market expected to begin in early 2009.