Reliance spuds fourth well at KG-DWN-98/3

Vol 6, PW 14 (11 Sep 02) Exploration & Production

RELIANCE IS GOING ahead with its deepwater drilling programme at eastern offshore block KG-DWN-98/3 at the risk of further angeringthe environment ministry.

A source tells this report a fourth exploration well was spudded on 4th September by Transocean drillship Discoverer 534 sitting in water depths of 1,100 metres. Target depth for the well is 3,500 metres.

Drilling is expected to be completed around 19th September. "The three wells drilled have encountered promising gas zones ranging in thickness from 60 metres to 120 metres," we are told.

"The gas is 'free gas' and has no hydrogen sulphide in it." Once drilling is complete, Schlumberger will carry out logging activities for the fourth well too. No more exploration wells are planned on this block.

Instead, Reliance will begin appraising the results of its four- well exploration programme. Reliance believes the fourth well is crucial to its plans for the block.

"Only after the fourth well is drilled and tested can Reliance estimate the limits of the reservoir." Reliance has hired DeGolyer & MacNaughton to carry out reserves appraisal and will draw up a development plan for the block when the consultant hands in a reserves estimate. "We expect to hand over the development plan to the ministry well before December." The first well was drilled in water depth of 650 metres and the second, further down the structure, in 1,340 metres depth.

The third well was drilled in about 1,000 metres water depth. Target depth for the three wells drilled so far has been 2,500 metres.

Reliance drilled its first well in this block in April.