Reliance plans 30 more CBM wells at Sohagpur

Vol 14, PW 7 (23 Sep 10) Exploration & Production
     

Reliance has high hopes that by the end of 2011 it will have 70 producing wells at its Sohagpur East and West CBM blocks in Madhya Pradesh.

PETROWATCH learns Reliance is targeting up to 4m cm/d of CBM production from these 70 wells. But first, it needs to add 30 development wells to the 40 production wells already drilled across the two blocks.

“We are implementing the development plan for our CBM blocks approved by the DGH (in 2007),” says a source. “We want to begin drilling these 30 development wells by the end of October or by November.

” Reliance wants to hire a CBM drilling rig by the end of this month, he adds, as mobilising it to the site could take nearly a month and a half once the contract is awarded. John Energy and Mitchell Drilling are among the drillers Reliance is talking to for a one-year contract to drill the 30 planned development wells.

An industry source tells us Reliance produced and ‘flared’ 100,000 cm/d of ‘test’ CBM from 20 Sohagpur wells earlier this year. “It later capped a few wells to lower production,” he adds.

Current Sohagpur production hovers at 25,000 cm/d from five wells. Reliance uses some of this CBM to run gas-fired electricity generators at the blocks, saving on diesel fuel costs, the rest is flared.

Reliance has also acquired nearly 300 acres of land near the Sohagpur blocks for a proposed 1000-MW power station to be run using CBM. “Civil engineering work has started at the power station site,” we hear.

“The first 50-MW unit should be ready in a year and half.” Reliance won Sohagpur East and West in the CBM-I licensing round, signing the PSC on July 26, 2002.

DGH estimates the 495-sq km Sohagpur East block holds 1.69-tcf of CBM while the 500-sq km Sohagpur West block holds 1.96-tcf, adding up to an impressive total of 3.65-tcf.

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