deepu 0 Report post Posted April 27, 2005 Reliance Industries, India's largest private sector oil firm, today said it has received Government approval for a plan to begin production of natural gas from its gigantic field in Bay of Bengal. "A development plan for producing 40 million standard cubic meters per day of gas initially from Dhirubhai 1 and 3 of KG-D6 block has been approved by the Directorate General of Hydrocarbons (DGH). Mining lease for 20 years effective from March 2, 2005 has been granted," the company said in a press release here. The release did not give the start date for production. It also did not state the investment the company will make in bringing the gas in the deepsea block to production. Vinod K Sibal, director general, Directorate General of Hydrocarbons, had earlier this month told PTI that DGH had approved an investment plan of 2.49 billion US dollars to produce 40 mmscmd of gas from the Dhirubhai-1 and Dhirubhai-3 fields from end 2007 or early 2008. The company has found gas in 9 out of the 12 wells drilled so far in deepsea 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. 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. Reliance holds 90 per cent interest and Niko Resources of Canada the remaining 10 per cent. Share this post Link to post Share on other sites
