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Reliance finds more gas
Reliance Industries Ltd said on Tuesday that it has found more natural gas in the Krishna-Godavari basin off the country’s eastern coast, but it is not clear how big or significant the find is though independent estimates suggest strong potential.
Reliance Industries Ltd said on Tuesday that it has found more natural gas in the Krishna-Godavari basin off the country’s eastern coast, but it is not clear how big or significant the find is though independent estimates suggest strong potential.
Reliance found three gas reservoirs in the a block named KGV-D3 (or D3) located about 45 kilometres off the coast in the Bay of Bengal.
It is located in the vicinity of the lush D6 block where two blocks have already started producing gas, but is separate. The D6 block is the one whose gas is at the heart of a dispute between brothers Mukesh and Anil Ambani over supplies from Mukesh-controlled RIL to feed Anil-controlled power plants.
The previous gas discoveries in this block were made in February and April this year.
The company said it was evaluating the commercial potential the find, but Hardy Exploration and Production India Inc., which holds a 10 per cent share in the block had said in May that potential resources in the KG-D3 field may be as much as 9.5 trillion cubic feet.
It had cited figures estimated by consultants Gaffney, Cline & Associates Ltd.
This is slightly less than the recoverable gas reserves of D6 where the two wells are estimated to have reserves of 10.3 trillion cubic feet. The whole of D6, is estimated to have a potential of more than 50 trillion cubic feet.
“The potential commerciality of the discovery is being ascertained through more data gathering and analysis,” RIL said in a statement.
RIL stock closed marginally down at Rs 1018.80 a share.
It is still not clear whether this fresh discovery would have an impact on the dispute between the brothers.
The discovery has been named Dhirubhai-44. The first two exploratory wells --Dhirubhai 39 and 41—are at present under appraisal.
