Reliance upbeat on achieving major breakthrough this fiscal

Reliance Industries Limited's gas and oil exploration division in the Krishna-Godavari basin (K-G basin), Rajahmundry, expects to achieve a major breakthrough this fiscal on the basis of its findings in seismic studies. The company has sent the report to the laboratories in the US.

Speaking to Business Standard, Shudhanshu Goswami, base manager of drilling operations, said that Reliance is deploying state-of-the-art technology for their project in the K-G basin covering all activities such as seismic studies, processing and interpretation of data, drilling, LWD-MWD, coring, MDT and well testing.

Reliance operations in the K-G basin cost a staggering Rs 1.5 crore per day. In the fiscal ended March 31, 2005, Reliance spent close to Rs 500 crore on its operations in its quest to achieve a breakthrough.

"At present, we are constructing a bund around the blocks where exploratory rigs are located within 40 to 50 nautical miles. The bund construction, close to the gas terminal, is being taken up at a cost of Rs 2 crore," Goswami said. On the budget for the current fiscal, Goswami said that it will not be less than what it was in the just concluded fiscal.

Reliance operates two rigs in two separate blocks "� 'Discoverer-534' in the K-G D-6 block and 'Actinia' in the K-G-20 block.

Reliance has a stake in 32-exploration acreage in India in a consortium with other exploration and production companies.

These blocks cover a wide range of geological settings spanning shallow and deepwaters on the east and west coast of India. Reliance is operating in 32 blocks in India and in one more block in Yemen, the operations of which went on stream in 2004-05. Of the 32 exploration blocks, as many as 5 are onland, 16 in shallow waters and 12 in deepwaters.

These blocks were awarded through a process of open and competitive international bidding. Reliance currently has 32 blocks with a total oil and gas exploration acreage of 2,30,000 square kilometres. The block K-G-DWN-98/3 (D6) covers an area of 7,645 square kilometres.

Reliance covered the block with a close-grid 2D seismic data followed by 3D seismic data. The water depths in the block vary from 400 to 3,000 metres. Reliance started its exploration in this deepwater block and drilled its first well at a depth of around 640 metres.

Reliance holds 30 per cent stake in its unincorporated joint venture with BG Exploration and Production India Limited (BGEPL) and Oil and Natural Gas Corporation Limited (ONGC) to develop and produce the proven oil and gas fields viz Panna-Mukta and Tapti. BGEPL too has 30 per cent share while ONGC holds the remaining 40 per cent equity.

The oil and gas production from Panna-Mukta and Tapti fields is currently being sold to the Government of India nominees "� Indian Oil Corporation Limited and the Gas Authority of India Limited.