D6 block could hold more than a billion barrels of oil

Vol 9, PW 25 (06 Apr 06) Exploration & Production

Transocean deepwater drillship Discover 534 struck oil at KG-DWN-98/3 around December 2005 in the 16th well drilled on the block.

Unlike at the earlier locations, this time the primary target was the older and deeper Cretaceous era sediments. Reliance, it seems, was gambling on GSPCs discovery of gas in the Cretaceous section at adjacent block KG-OSN-2001/3.

The gamble paid off and, everybody in Reliance (connected with the D6 drilling) started shouting with joy. Reliances joy increased further when it was estimated that the MA prospect could hold between 250m and 500m barrels in place oil.

More, Reliance has mapped out six more similar Cretaceous prospects on the block and if drilling turns up oil at these too, each of them could hold between 250m and 500m barrels in place oil. At a conservative estimate, the block could hold about a billion barrels of in place oil.

Still, Reliance bosses have decided that no news of this exciting find should leak out before chairman Mukesh Ambani makes the first announcement. Says a source: By January, everybody in Reliance connected with D6 just clammed up.

If you ask them whats the latest on the oil find theyll tell you that nothing is known for sure and that studies are still going on. But those in the know at Reliance are convinced that the company is on to a big thing with the oil discovery.

If the other six prospects also turn out to contain oil, it will be very, very big for Reliance, we are told. The share price will skyrocket.

In anticipation of this, several very senior level Reliance employees have been quietly buying up the companys stock from the market. Reliance bosses have so far managed to prevent any news leak about the oil discovery.

Only Nikos announcement on 14th February gave a significant hint about whats in store. Since then, there have been no more announcements from Niko.

Reliance has managed to gag Niko, says a source. Theyve been warned against making any more announcements.