Reliance delays drilling at CB-ON/1 till Q2 next year
Reliance has put back drilling of its first well at pre-NELP exploration block CB-ON/1 in the Cambay basin.
It will most likely be drilled in the second quarter of next year, reveals a source. With all the new seismic coming in its going to be difficult to drill before the end of this year as we wanted to earlier.
Heavy monsoon rains in the region have contributed to the delay. Reliance was initially set to begin drilling at this block late this year or early next year.
Difficulty in getting a rig is also going to have an impact on the date of first drilling, we hear. Reliance has begun looking for a rig.
In December last year, Torun Geofyzika of Poland began a 2D seismic acquisition programme at CB-ON/1, which should be completed later this month. Reliance is committed to acquiring 600-km 2D under its two-year Phase-I work programme at CB-ON/1, which ended on 5th September.
Reliance initially wanted to double this to 1200-km but has now increased it further to 1500-km, such is the companys confidence of the blocks prospectivity. Phase-II commits Reliance to one exploration well at the block but it plans to do better.
We plan to drill a lot more wells, adds our source. Were putting a lot of effort into exploring this block properly.
It is in the same graben as the discoveries in Rajasthan and other discovered fields in the Cambay basin. We share the same postal address as the Cairn discoveries.
PETROWATCH learns Reliance has initially set aside a budget for two firm and two contingent wells at CB-ON/1, but that there could be many more. Plans for 3D are still on track.
Nothing has been firmed up yet, we hear. Well decide on the 3D after seeing results from the wells.
Reliances exploration budget for CB-ON/1 is $20m, including the cost of the Torun seismic programme, but this too, is set to rise amid high expectations of the blocks prospectivity. Phase-II, lasting two years, has a single well commitment, as does Phase-III.
