Reliance to deploy two rigs in KG fields

Reliance Industries (RIL) will deploy two deep-water drilling rigs on its gas-rich Block D6 in the Krishna-Godavari (KG) basin off the Andhra Pradesh coast this year as it chases the June 2008 deadline for first output.

RIL has contracted Transocean drillships Deepwater Frontier and Deepwater Expedition for bringing the discoveries to production, industry sources said.

The gas discoveries were made by Transocean deepsea drillship Discoverer 534. While Deepwater Frontier arrived in July, Deepwater Expedition is expected by the end of the year.

Sources said Deepwater Expedition and Deepwater Frontier will drill 14 development wells by June 2008 on discoveries Dhirubhai-1 and 3.

The development of the two finds would cost RIL and its 10% partner Niko Resources of Canada around $2.3 billion.

The company is expecting an initial production of 40 million standard cubic meters per day.