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Reliance Industries D6 to see action after 15 months
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Thursday, 22 Nov 2012

After almost a 15 month lull, the Reliance Industries operated D6 block is going to see some drilling activities, which will help increase output from the country’s largest gas fields.

The operator is going ahead with the drilling activity despite the continued difference with the Government auditor on whether the Comptroller & Auditor General can do a performance audit for private entities.

The CAG has reportedly been asking the Petroleum Ministry not to give the go ahead to RIL’s D6 investment plans, till the operator agrees to unconditional audit.

A company official said that “RIL has been maintaining that it has no objection to any audit, provided it is done according to the production sharing contract.”

Asked if RIL can carry on with its activity under the circumstances, an official said that “When has RIL waited for any communication.”

The first week of December will see Reliance and its partners in the East Coast block start drilling work, with the rig scheduled to arrive on November 28.

The Directorate General of Hydrocarbons is understood to have given its nod to the contractor to undertake drilling activity in one of the four satellite fields discovered in the D6 block.

Sources said that once the formal communication is received from the Government, the company plans to drill a well G2 in D19 satellite discoveries in the block.

D6 block has been drawing public attention more because of its falling output after hitting a peak of 60 million standard cubic meter per day in 2009 end. The major fields in the block D-1 and D-3 and MA together produce 24 million standard cubic meter per day. If all the four satellite fields, coupled with R Series discovered in the D6 block go on stream, then the estimates show that the operator can produce additional 30 million standard cubic meter per day.

The rig, which is arriving next week, is on a long term lease. It is partly owned by RIL and partly by Transocean. Industry observers say the drilling activity will start in prime time which goes up to March to April, provided there is no cyclone. It gives enough time to a contractor to undertake exploration activities.

Source - Business Line


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