Reliance, Niko strike oil in KG basin

Reliance Industries and its partner, Canada-based Niko Resources, have
discovered oil in the hydrocarbon-rich Krishna-Godavari basin.

According to an announcement on the website of Niko Resources, the companies have discovered "the thickest hydrocarbon column to date" in the D6 block in KG Basin.

The announcement, dated December 15, said they have discovered a column of gas condensate of 170m and 24m of oil-bearing hydrocarbons. RIL holds 90 per cent in the block while Niko holds 10% stake.

The release also said: "Application for monetising the gas discovery
has been sent to the Directorate General of Hydrocarbons. The company plans  to start production from the second quarter of 2008."

When contacted, V K Sibal, Director General of Hydrocarbons, said the
DGH is yet to receive the application.

RIL first discovered oil in the area in June this year and another gas find
in September. The area, first discovered in 2002, may hold as much as 35 trillion cubic feet of gas, according to the estimates of Niko Resources.