By OGJ editors
HOUSTON, Dec. 15 -- Drilling and geophysical work the past 2 years has led to a sharp increase in the hydrocarbon potential of the D6 block in the Krishna-Godavari basin off India, said Niko Resources Ltd., Calgary.
Meanwhile, Reliance Industries Ltd., Mumbai, D6 operator with 90% interest, said the government approved an addendum to the Dhirubhai gas field development plan that will give Reliance and Niko flexibility in developing D6.
The addendum provides for a gas rate of 2.8 bcfd, expandable to 4.2 bcfd, with flow starting in mid-2008. The $5.2 billion first phase calls for 22 wells, and the $3.64 billion second phase calls for 28 more wells.
In another development, the companies confirmed the mid-2006 Cretaceous oil discovery on the block when the MA-2 appraisal well encountered the block's thickest hydrocarbon column to date.
MA-2, TD 3,581 m, penetrated a 194-m gross hydrocarbon column consisting of 170 m of 53° gravity gas-condensate and 24 m of 42-43° gravity oil. MA-2 is 2 km from the MA-1 discovery well.
The companies expect approval soon of MA field's commerciality declaration. After submitting a development plan, the companies plan to fast-track development and begin oil production in the second quarter of 2008.
Niko has said numerous geologically analogous features on D6 are of a size that could lead to a new world-class oil province. However, the MB-1 exploration well on a separate structure east of MA field found no hydrocarbon charge.
Niko didn't quantify the extent of the resource growth on the block.
Since the November 2004 approval of the initial development plan of Dhirubhai Nos. 1 and 3 fields, the companies have shot 7,600 sq km of 3D seismic surveys, drilled and tested several exploratory wells, drilled and extensively cored two development wells, and through consultants conducted detailed technical studies.
The Deepwater Frontier semisubmersible has moved to drill development wells for the Dhirubhai gas development project.
