Today in New Delhi, India
Nov 19, 2018-Monday
New Delhi
  • Humidity
  • Wind

Niko to invest $20-25 mn in D6 block

The development drilling of the Krishna-Godavari basin block will begin some time in 2007, said a Niko spokesperson.

india Updated: Nov 13, 2006 20:57 IST

Canadian-company Niko Resources, that holds a 10 per cent stake in the prime Krishna-Godavari basin block, D6, will be investing another $20-25 million in the block in the current financial year.

Reliance Industries holds the remaining 90 per cent of the block and has recently announced that it would raise $2 billion through foreign currency bonds for investing in D6. It has been reported that Gail India is also keen to take a stake in this block.

The Reliance-Niko combine has been unable to get the necessary deepwater rigs needed for the job as they had earlier planned. The Niko release says that while deepwater rig Deepwater Frontier will continue to work in the block.

Two other deepwater rigs, Transocean D-534 and Deepwater Expedition are now expected to arrive in April 2007 and December 2007 only. These rigs were expected earlier, with at least one more was expected in August 2006.

The NIKO release says that the 3D seismic study for the entire D6 block has been completed. The development drilling of the block will begin some time in the calendar year 2007 and the same three rigs that are to be used for exploration drilling will be utilised for development work too.

The release adds, "The design and installation of the production facilities is well underway. Major tender packages have been issued and the civil construction of the natural gas plant site is substantially complete."

Niko also has a 10 per cent interest in the NEC-25 block and plans to invest another $4-6 million in this block. Reliance Industries also holds the remaining stake in this block.

The company also owns 100 per cent interest in the Cauvery block in southern India and it has drawn up an exploration programme for the block is expected to commence from July 2007. The company has already completed major part of the a 3-dimensional study programme in the block.

First Published: Nov 13, 2006 20:57 IST