More details on Reliance KG gas discovery

Vol 6, PW 19 (20 Nov 02) People & Policy

RELIANCE CAN RIGHTLY claim to have re-ignited global attention on the deep waters of the Krishna Godavari basin offshore Andhra Pradesh.

Yet the company has to go a long way before it can match the disclosure levels of global oil and gas companies. The best it does are selective leaks of vague information that seem more designed to boost its share price than provide hard information to those that need it most.

Nevertheless, PETROWATCH has been able to get more technical details on two more wells. We understand that well Dhirubhai-2 "intersected gross hydrocarbon pay thickness of 50 metres with a net hydrocarbon gas pay of 25 metres in the early Miocene/Oligocene sequences." We also learn that the sand range between 3,027 metres and 3,063 metres produced gas during "modular dynamic testing".

The gas-water contact in this well was established at a depth of3,061 metres. We have no information yet on the flow rates from this well, but Reliance reckons Dhirubhai-2 has about 160bn cubic feet of in place gas reserves.

We understand that well Dhirubhai-3 "intersected gross hydrocarbon pay thickness of 170 metres with a net hydrocarbon gas pay of 100 metres in the Upper Miocene sequences." A drill stem test carried out in the "gross perforation interval" of between 1,953 metres and 1972 metres produced dry gas flowing at the rate of 29.6m cf/d through a 48/64-inch choke at a surface flow pressure of 1,925psig. Here too, the flow rate was limited by the test string and surface piping sizes.

A conservative preliminary estimate of reserves puts the figure at 3.5 tcf of in place gas.