NEC25 exploration
Reliance Industries Ltd (RIL) is going to intensify its exploratory focus on the north western portion of the Bay of Bengal block NEC-OSN-97/2. Speaking exclusively to Indian Petro News on Tuesday (February 24, 2009) reliable company sources revealed that any fresh drilling in the block is likely to take place around the central portion of the northwest boundary. Already a cache of 1,000 sq km 3D seismic data has been shot in the area, the processing of which is presently in the final stages. The latest development comes close to a six-month extension -- likely to be awarded to the operator -- in the block.
8The Directorate General of Hydrocarbons' (DGH) recommendation for the proposed extension -- under the existing policy -- is presently being looked into by the ministry. According to at least two major clauses -- Article 3.1 and 3.7 -- of the PSC, Reliance is entitled to seek an extension beyond seven years for completion of work programme. This is also in line with the objectives of the New Exploration Licensing Policy (NELP) to encourage exploration to the maximum extent. Reliance is presently in Phase-III of work programme in the block, situated off eastern Orissa.
8A government committee recently gave its green light to the development plan -- for six gas discoveries -- in the 10,775 sq km block. DGH clarified to the petroleum ministry, the legality of the assignment of Niko`s entire 10% participating interest in the block to its affiliate NELPIO Ltd, asserting that the transfer of stake is covered under Article 28 of the PSC, governing assignment of interest. Readers would note that the initial estimates have revealed an in-place volume of 2.5 trillion cubic feet --- more than double the earlier estimates ---- of natural gas in the NELP-I block. Readers would note that Reliance has already submitted a development plan for its gas discovery wells in NEC-25.
