• Monday, December 16, 2019

India finds huge oil and gas reserves off its eastern coast.

Discussion in 'Pakistan Economy' started by Zaheerkhan, Sep 22, 2008.

  1. Zaheerkhan

    Zaheerkhan FULL MEMBER

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    Reliance Industries Ltd. has discovered oil and gas in a shallow-water exploration block in the hydrocarbon-rich Krishna Godavari basin off India's east coast, the country's regulator said on Tuesday.



    "Reliance has made two separate discoveries in the block which have been certified by us," director general of Hydrocarbons V.K. Sibal told Reuters.

    He said Reliance struck oil in its Dhirubhai-24 well with a potential flow rate of 2,400 to 2,700 barrels per day, while both oil and gas were found in Dhirubhai-25 with flow rates of 3,012 barrels and 2.6 metric million standard cubic metres per day. The production would be boosted to upto 5.5 million barrels a day in the next 4 quarters.



    Source:expressIndia
     
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  2. Neo

    Neo RETIRED

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    5.5 million bpd?? :what:

    I don't understand, with a well producing between 2.500-3000 bpd you know how many wells you'll have to dig to come to the sum of 5.5 million pbd?
    And what next 4 quarters..? A year...? :confused:

    If the report is true, India will become worlds 5th largest producer of crude oil.
     
  3. dr.umer

    dr.umer SENIOR MEMBER

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    I think GOP should start searching oil as well. After this report I think we will become 6th largest oil producing country in the world. :azn:
     
  4. su-47

    su-47 SENIOR MEMBER

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    wow. that would do India a world of good. secure oil supplies are essential in these times of rising oil prices. Tha

    Thanks for sharing the article Zaheer, but link u posted isnt working. please check it again.
     
  5. AliFarooq

    AliFarooq SENIOR MEMBER

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    Pakistan could have a lot of oil. Most of the train in pakistan has not been explored for oil.
     
  6. Marshal

    Marshal FULL MEMBER

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    No........actually the news you have posted is regarding the D6 block which was discovered in 2006...and probably Zaheer was talking about reliance's new oil discovery few days a go in L1 block at KG basin......however this is still unconfermed report as it was reported only in few news channels, accourding to the news the discovery in the L1 block is assume to be the largest so far in India but it will take sometime to quantify how much oil and gas reserve actually there in the block.
     
    Last edited: Sep 24, 2008
  7. Zaheerkhan

    Zaheerkhan FULL MEMBER

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    Reliance flows first oil



    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.

    Reliance, the operator of the block with 90 per cent stake, is likely to make an announcement in the next few days and it is expected that company Chairman and Managing Director Mukesh Ambani will announce the accomplishment. "You may hear of it as early as Monday (September 22)," the source said.

    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 tonnes 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 USD 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 USD 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 USD 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 USD 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