Reliance D3 block critical to Hardy growth

Vol 16, PW 21 (16 May 13) Exploration & Production
     

Things are looking up for Hardy Oil in India, not just at PY-3 where the stage is set for resumed production, but also at Reliance-operated KG-DWN-2003/1, or the D3 block, where it holds a 10% stake.

“This is the ‘jewel in the crown’ of Hardy’s portfolio,” Ian MacKenzie, CEO, tells us. In an interim statement released on May 9, the UK-listed explorer adds, “D3 remains at the core of our organic growth potential.

” Two deepwater exploration wells, says Hardy, are planned in early 2014, the last in a six-well Phase-I work programme that has already seen four consecutive discoveries, two of which await DGH endorsement as commercial: Dhirubhai-39 and 41. Reliance has told Hardy that due to “rig availability constraints” it can’t meet the original plan of drilling two exploration wells by the end of this year (2013).

Deepwater drillship DD-KG2, now drilling at KG-D6, is cited as the most likely rig to be deployed for the campaign, says Reliance. “Unfortunately we are a minority partner and the timing of drilling is at the discretion of the partner,” says Hardy.

“The latest correspondence with the operator (Reliance) indicates that drilling is to commence in the first quarter of 2014.” When drilling begins it will most likely be in eastern parts of the 3288-sq km NELP-V block where JV partners Reliance (60%), BP (30%) and Hardy (10%) are identifying new locations from 3250-sq km 3D shot across the block since the PSC was signed on September 23, 2005.

Water depths at deepwater block KG-DWN-2003/1 range from 400 to 2200 metres.

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