Reliance readies NEC-25 development plan

Vol 11, PW 6 (26 Jul 07) News in Brief
     

Reliance is almost ready with its development programme for Mahanadi Basin block NEC-OSN-97/2, also known as NEC-25.

“Within the next few weeks the development programme will be sent to the government,â€‌ PMS Prasad, president of Reliance’s petroleum business, tells us. Reliance has reported seven gas discoveries from NEC-25 so far, and predicts a â€کresource’ estimate of 8.3-tcf.

First gas from NEC-25 will land at Basudevpur in Orissa for transport by pipeline north to industries in West Bengal. Prasad said Reliance expects significant upside in the â€کresource potential’ of this block after an appraisal programme over the next few months.

Reliance has no rig at NEC-25 for now but expects one next year to drill the third well of a planned eight-well exploration programme. On March 13th Niko Resources said two exploration wells were drilled and some seismic shot over the block this year.

One well was a gas discovery – whose commerciality is under evaluation - while the other was dry. Reliance holds 90% and Niko holds 10% of NEC-25.