Reliance told to hasten Krishna-Godavari gas

Production by Aug 2007, instead of 2008: Govt

The directorate-general of hydrocarbons has asked Reliance Industries to advance the date of production of gas from the Krishna Godavari basin to August 2007 instead of 2008 as indicated by the company.

Speaking to reporters today, VK Sibal, director-general, hydrocarbons, said a team from his directorate visited the Reliance site and the company was told to start production from August 2007.

Reliance has submitted that its fourth discovery in Krishna-Godavari basin off Andhra Pradesh coast be declared commercial.

It had earlier declared three gas finds in the basin and had now submitted to the government that the Dhirubhai-6 field be declared commercial, said Sibal.

The company estimates 46 billion cubic metres or 1.2 trillion cubic feet of gas reserves in the Dhirubhai-6 field. The company also plans to produce 40 million standard cubic metres per day of gas from the Dhirubhai-1 and 3 fields.

Reliance had expressed its inability to supply natural gas to National Thermal Power Corporation's Kawas and Gandhar power stations from March 2007.

The company had emerged as the lowest bidder for supply of gas to the power stations in Gujarat and had committed to supply about 3 million tonne natural gas annually from its gas fields.

The gas would be used for generating 2,600 MW from the expanded Kawas and Gandhar projects in Gujarat.

Reliance would invest $2.47 billion in developing Dhirubhai-1 and 3 fields. Reliance's Dhirubhai 2 discovery has been declared commercial.

The development plan for two deep-water discoveries of Reliance Dhirubhai 1 and Dhirubhai 3 has already been approved and production is expected to begin in mid-2008.

Reliance holds two deep-water blocks in the Krishna-Godavari basin off the Andhra Pradesh coast of which Block KG-DWN 98/3 has reported discoveries.

According to the development plans, the company has drilled 15 wells of which only one was dry.

The company has carried out exploratory drilling in eight blocks where it dug 27 wells. Of this seven were dry. Its success rate in the blocks was 74 per cent.