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Reliance starts production in Krishna-Godavari basin
In a significant development, Reliance Industries has begun crude oil production from the nation’s first deep-sea oilfield in Krishna Godavari basin, an accomplishment that the firm may announce in the next few days.
The company’s predominantly gas-rich D6 block in Krishna Godavari basin on September 17 flowed first oil, said a source in the consortium of Reliance Industries and Niko Resources of Canada which operates the block.
Block KG-DWN-98/3 or D6 will be the first area in deep-sea to produce crude oil since India opened up its oil hunt programme for private and foreign players in 1999 with the advent of New Exploration Licensing Policy (NELP).
The Mukesh Ambani-led group operates India’s largest refinery at Jamnagar in Gujarat and will start production from another only for exports unit in next couple of month. It will however not refine the D6 crude at its refineries and instead sell it to state refiners.
Reliance, the source said, has initially opened one of the two oil producing wells in the MA oilfield in the D6 block. “Oil flowed at the rate of 200 barrels per day but once system stabilises, the choke will be fully opened to produce more.” Once both the wells are in full operation, the output will rise to 10,000 to 15,000 barrel per day within weeks. Two more wells are planned to be drilled on the field which would raise the output to 34,000 barrels per day (1.7 million tones a year).
Reliance is likely to sell 0.8 to 1 million tonnes of oil from the field to Hindustan Petroleum’s Vizag refinery while the remaining output will go to Chennai Refinery, a subsidiary of Indian Oil Corp.
The company earlier this week successfully installed a floating production storage and offloading system (FPSO) on the oilfield.
Reliance invested $2.234 billion in the MA oilfield that is estimated to hold 53.5 million barrels of reserves and will produce oil for 11 years – beginning with 20,000 bpd in first year and rising to 30,000 bpd in second year before beginning to decline.
Aker Smart-1 FPSO, contracted for $733 million, will help eliminate the need for piping the oil to the shore for onward transportation to refineries. Oil tankers can directly load at the FPSO and carry the oil to the destined refineries.
Reliance is separately investing $5.2 billion in phase-I of its gas field development plan, the first output of which is expected at least two months later than the first oil.
The firm has made 18 oil and gas discoveries in D6 and besides MA it is currently developing Dhirubhai 1 and 3 gas finds at an additional investment of $5.2 billion.
Initial gas output that may start now before November-end is seen at 15 million standard cubic meters per day and going up to 40 mmscmd in three months.
Niko has 10 per cent stake in the 7,645 sq km KG-D6 block. Reliance is the operator with 90 per cent interest.The block was awarded to Reliance-Niko in India’s first international bid round in 1999.
Gas production from the Krishna-Godavri basin is expected to start in first quarter of 2009. The K-G basin will bring down India’s import bill by Rs.1,000 billion per year, Ambani said.
The gas will be sold at a base price of $4.2 per mmbtu (million British thermal unit) compared to the $2.02 quoted by the Oil and Natural Gas Corp (ONGC).
The utilisation of the gas is still embroiled in controversy, with RIL and younger brother Anil Ambani’s Reliance Natural Resources Ltd locked in litigation in the Bombay High Court over sharing of natural gas from the K-G basin.
Source : DNA, HIndu, NDTV
Add comment September 21, 2008
Ocean of LIFE : Reached in 75 Countries
Dear Readers,
Thanks for your support & encouragement to make this such a big success, looking forward for your continous support & patronage to take it further…
Countries acssed Ocean of LIFE
I solicit your valuable inputs, comments, critics, things you like to see on this page.
best regards
Add comment August 10, 2008
Headline Maker in Hindu
ACA North Zone inter-district under-13 cricket tournament for the P.N. Rajagopal Trophyat the ACA-VDCA Stadium, Vizag on Saturday.
Tarun’s spell helped East Godavari restrict Srikakulam to 158 in its first innings. East Godavari was 71 for three in reply at close on the first day of the two-day match with Aravind Sharma scoring 48.
Congrats, Dear Arvindfor your success at district level & securing a berth at Zonal level (Vice Captain) is a matter of proud not only to you & your parents but to all of us here. We had been closely following your performances in last one week & very pleased with the outcome & wish you all the more success in the coming days & years to come. Keep shining in the sphere of life wherever you go… Wishing you all the best.
Add comment November 20, 2007
7 Wonder Foool Years
Jyoti,
Thanks for Jhalo me all these years, that a real achievement for you.
I must congratulate both of us for beiing together all these years.Happy anniversery …..
I am sorry for not being with you, see the destiny we are catching flights in different directions!!!
But I promise you for a beautiful day once we are back…
Looking ahead for more beautiful time together in the years to come.
with lots of luv & good wishes for both of us & for the wonderful kids.
1 comment April 17, 2007
Blink
her, she is known to a frnd for last five years? They share a wonderful
relationship(atleast WHAT I CUD SEE, committed to each other, & had planned
their future well.
CAN’T LIVE WITH ‘EM
CAN’T LIVE WITHOUT ‘EM
2 comments February 10, 2007
Small World !!!
4 comments February 10, 2007







