Reliance Industries Ltd., one of India's largest conglomerates, has decided to invest 34.62 billion rupees ($750 million) in its partnership with Niko Resources Ltd., Calgary, for exploration of the 12 blocks awarded the firms earlier this year.
The companies won nine shallow-water and three deepwater blocks.
A first phase investment of 7.92 billion rupees is to span 3 years. The second and third phases call for spending of 11.3 billion rupees and 15.4 billion rupees, respectively.
The largest chunk of investment-6.64 billion rupees-will address exploration of the 7,645 sq km Krishna-Godavari deepwater offshore block.
"Our investments in the first phase will be for conducting seismic surveys," a Reliance source said. "We expect to spend 6 billion rupees for the exploration of the Mahanadi deepwater offshore basin."
The biggest investment on the nine shallow-water blocks awarded will go to explore two blocks off Mumbai.
Reliance-Niko was awarded 90,810 sq km or 42% of the total area allocated for the exploration round.
Public-sector oil companies won 117,575 sq km, and Cairn Energy PLC of the UK got 9,800 sq km.
The Indian government will invite bids in November or December 2000 for a second round of exploration contracts. It is to offer 30 blocks this year compared with 48 in the first round.
Niko recently said it expects net gas flow to climb to 36 MMcfd in November from 6 MMcfd in August from its one-third interest in Hazira gas field 25 km southwest of Surat, where it is tying in directional wells drilled under the Gulf of Cambay from its land-based production platform.
