Govt approves Reliance's $ 2.49 bn investment plan
Thursday, April 7 2005 19:12 Hrs (IST) - World Time - 
New Delhi:
Government has approved Reliance Industries' $ 2.49 billion investment plan to develop its huge gas find in Krishna Godavari basin, off the east coast. Reliance Industries will produce 40 million standard cubic meter per day of gas from the Dhirubhai-1 and Dhirubhai-3 fields from end 2007 or early 2008, said Vinod K Sibal, director general Hydrocarbons, the Government's upstream nodal agency.
"The development plan approved by us envisages Reliance investing $ 2.49 billion," he said in an interview.
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The company has found gas in 9 out of the 12 wells drilled so far in deep-sea block KG-DWN-98/3 (also known as KG-D6) and only the first three discoveries - Dhirubhai 1, 2 and 3 have been declared commercial. Of these, Reliance proposes to develop Dhirubhai 1 and 3 in the first phase of development.
He said that Reliance would produce 40 million standard cubic meters gas per day for 7.5 years from discoveries Dhirubhai 1 and 3 from a total of 34 development wells.
First gas will now land in March 2008, as against earlier August 2007 at a gas processing facility near Kakinada through a 35-km, 24-inch diameter pipeline.
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Reliance holds 90 per cent interest and Niko Resources of Canada the remaining 10 per cent.
"The development plan has been approved based on our estimation of 5 to 6 trillion cubic feet of proven gas reserves," Sibal said, adding the in place reserves in the D6 block may exceed 14 tcf.
PTI
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