RIL may start drilling in KG-D9 block in six months

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Mumbai, Feb 18: After its success in deepwater exploration in KG D3 basin, Reliance Industries Limited (RIL), a major E&P acreage holder in the country, is likely to start drilling one of its block in KG-D9 basin (11, 605 sq basin) in the next six months. This basin is one of the largest under RIL. The block was unexplored till date due some of RIL’s rigs arriving two years behind schedule. According to industry sources, RIL is likely to get two new rigs within a year's time.

Earlier, FE had reported that RIL has chalked out an aggressive exploratory programme over the year. During this period, drilling is proposed to be carried out in 11 out of the 33 blocks, while RIL also plans extensive seismic studies covering all major basins including blocks awarded in NELP VI.

The offered deep-water block KG-DWN-2001/1(D9) is located in the offshore Godavari delta beyond 2,400mt. RIL is the operator for the block. It had won the block in the third bidding round (NELP III) with Hardy Exploration Production (India) Inc holding a 10% participating interest. Eventually, Hardy offloaded its stake and now RIL holds 100% stake in the block.

A recent Macquarie Research report shows that RIL’s overall success rate of striking oil and gas in wells drilled is above 62%, which is way above the global benchmark. RIL has acquired significant expertise in deep water explorations through successes in the Krishna Godavari and Cauvery basins. This is also evident by its phenomenal success ratio of 79% in the deep water.

According to company sources, RIL is the country’s first private sector company in the exploration and production (E&P) sector to have discovered large gas reserves. RIL's E&P strategy is aimed at further enhancing the level of vertical integration in its energy business, and realising value across the entire energy chain, while fulfilling important national priorities.