Reliance submits 12-well bid for KG-OSN-2001/2

Vol 6, PW 19 (20 Nov 02) Exploration & Production
     

KRISHNA GODAVARI SHALLOW water offshore block KG-OSN-2001/2 was the most hotly contested block in the third NELP licensing round.

There is still no formal announcement of the winners from the government but we know that with four bidders,the largest number for any NELP-III block,KG-OSN-2001/2 attracted the most interest. ONGC, Reliance Industries, Oil India and Cairn Energy submitted bids.

Yet we understand the Reliance-Hardy consortium left its competitors far behind. What clinched it for Reliance It offered to drill 12 wells, while ONGC offered only seven.

Oil India came third with five wells and Cairn came last with two wells. Reliance was also ahead in its seismic data acquisition programme.

Read below table for Reliance's proposed work programme and fiscal package.Reliance-Hardy work programme for KG-OSN-2001/2 Exploration programme Phases Work commitment Phase-I (three years) Acquisition, processing and interpretation of 1,500 km 2D Acquisition, processing and interpretation of 600 sq km 3D Reprocessing of 1,500 km old 2D seismic Drilling four exploratory wells each to 3,500 metres depth Phase-II (two years) Drilling four exploratory wells each to 3,500 metres depth Phase-III (two years) Drilling four exploratory wells each to 3,500 metres depth Reliance-Hardy fiscal package for KG-OSN-2001/2 Investment multiple Profit petroleum for government Profit petroleum for contractor Less than 1.5 16% 84% Between 1.5 and 2 25% 75% Between 2 and 2.5 40% 60% Between 2.5 and 3 70% 30% Between 3 and 3.5 70% 30% 3.5 and above 70% 30%