Rs 10,500 cr more for RIL block
The D6 block in the Krishna-Godavari basin is likely to see investment of Rs 10,500 crore more in the current financial year, reports Suman Layak.business Updated: Aug 19, 2007 21:53 IST
The D6 block in the Krishna-Godavari basin, jointly owned by Reliance Industries and Niko Resources, is likely to see investment of Rs 10,500 crore more in the current financial year, as per estimates announced by Niko Resources.
The entire D6 block is estimated to see total investment of $5.2 billion (Rs 21,359 crore). Nearly half of the amount is likely to be invested in the next nine months. The block may commence commercial production in the second quarter of 2008. Niko Resources owns a 10 per cent interest in the D6 block on the Krishna-Godavari basin, and accordingly invests 10 per cent of the total amount. The remaining 90 per cent comes from Reliance Industries.
The company has said that it has invested around C$46 million (Rs 178.2 crore) in the quarter ended June 30, 2007 and will invest another C$315-325 million (Rs 1220-1259 crore) in the financial year 2008 (the company follows an April-March year). It indicates that total investment in the current financial year would be more than Rs 12,200 crore.
The Niko Resources statement also says that as per the operator's report, 50 per cent of the offshore facilities have been completed and the onshore facilities are 35 per cent complete. The Dhirubhai 1 and 3 discoveries will be ready to produce 2.8 billion cubic feet of gas per day with the development plan allowing flexibility to scale up the production to 4.2 billion cubic feet of gas per day.
The Niko Resources statement also says that the two oil wells bored in D6 will also start producing oil from the second quarter of 2008.
"The field is on schedule to commence production in the second quarter of 2008, initially from two oil producers with initial targeted production of 30,000 to 35,000 barrels per day (3,000 to 3,500 barrels per day net to the company). More oil producers and gas injector wells will be drilled to complete the oil development plan."