By OGJ editors
HOUSTON, Feb. 15 -- Reliance Industries Ltd., Mumbai, and Niko Resources Ltd., Calgary, are doubling the original size of facilities planned to produce gas from Dhirubhai field in the D6 offshore block in the Krishna-Godavari basin.
The redesigned facilities will be able to accommodate 2.8 bcfd of gas and be expanded to 4.2 bcfd, Niko Resources said. The action "indicates the new view of the reserve and production potential of the gas field," Niko said without giving figures.
The initial design was for 1.4 bcfd (OGJ Online, Oct. 26, 2004). No clear indication has emerged when D6 gas production will begin or where the gas will be used.
Industry sources placed the gross proved reserves on the KG-DWN-98/3 (D6) block at 12 tcf.
The gas is in 400-2,700 m of water 40-60 km southeast of Kakinada. Reliance and Niko have discovered gas in Pliocene, Pleistocene, and Miocene formations and are beginning to talk of a deeper discovery in the Cretaceous.
MA-1 is the block's first exploration well with primary target in the Cretaceous, which has potential for both oil and gas. Niko said Reliance has indicated that MA-1 found hydrocarbons in Cretaceous.
Reliance and Niko have approved retaining consulting engineers to estimate hydrocarbons in place in the Cretaceous sequences based on results of drilling and testing and integrating these results with 2D and 3D seismic data acquired in the block.
MA-1 is the block's 16th consecutive successful exploration well.
Rigs to evaluate deeper-water parts of D6 are under contract and expected to arrive in September and November 2006. A 2,550 sq km 3D seismic survey is planned in January-March 2006 south of the 3D seismic survey shot in 2004 (see map, OGJ, July 18, 2005, p. 34).
Reliance and Niko plan to begin acquiring 2,100 km of 2D seismic data by Mar. 31, 2006, on the shallow-water MN-DWN-2003/1 (D4) block in the Mahanadi basin. Interests are Reliance 85% and Niko 15%.
Canadian security analysts said Gaffney Cline has estimated 18 tcf of gas in place on D4, but no reserves can be booked for lack of a development plan.
In the Cauvery basin, Niko plans to acquire 550 sq km of 3D seismic data on its 100% held, 236,000-acre, oil-prone land block starting in April 2006. Drilling is to start later this year.
Niko, meanwhile, plans to start oil production by Mar. 31, 2006, from the Hazira offshore platform. Hazira gas production averaged 49 MMcfd net to Niko, and Surat output averaged 10 MMcfd in the quarter ended Dec. 31, 2005.
