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RIL Seeks Two More Years to Explore Konkan Basin

  • Private explorer Reliance Industries Limited (RIL) has sought two years extension in first phase of exploration for Kerala deep-water blocks – KK-DWN-2001/1 and KK-DWN-2001/2. The company has told oil ministry that Kerala Konkan is a high-risk, volcanic basin and no explorer has been successful in drilling hydrocarbon in the basin in past two decades. However, RIL would utilise BP’s deepwater exploration expertise to continue exploiting the basin.Mukesh Ambani-promoted RIL proposes to carry out fresh geological surveys in Kerala Konkan basin. The phase one exploratory license would expire on December 31, 2011. RIL wants special extension for two years beginning January 1, 2012 till December 31, 2013. The private company has told government that it did not want to rush in to drilling wells in the basin. Drilling of wells without gathering sufficient data would lead to un-necessary expenses.
  • “RIL in joint venture with BP would like to continue exploration in this frontier basin (Kerala Konkan). The need is to generate a new and unique geological model. Only the development of new models hold out some hope for establishing this basin as a possible petroliferous area...RIL and BP are determined to give this area fresh look and examine alternatives that can re-construct new possibilities for exploration in this basin,” RIL executive director and member of the board P M S Prasad wrote to oil secretary G C Chaturvedi on December 6.“We are working on the specifics of these blocks,” BP said in response to Financial Chronicle query if the explorer has started working for Kerala deep-water blocks. “BP and RIL have begun joint work and are looking at options to increase production from KG D6 and other projects,” BP added.
  • Initially, the explorers tried exploratory models of adjoining Mumbai offshore in Kerala Konkan basin. But, it was found that geological structures are different in this basin. Kerala Konkan is a volcanic basin similar to other global acreages in northeast Atlantic, northwest Australia, Parana in Brazil, Columbia, east Siberia and Barents Sea.“…Given the special circumstances of the Kerala Konkan basin, the time, expenses and effort that we as contractors are willing to ultimately commit for dedicated exploration in these blocks are going far beyond our bid commitments. But, we feel this is worth it as this is the best chance for accreting reserves and establishing the potential of this basin,” Prasad wrote to Chaturvedi.RIL also plans to spearhead an industry study and rope in other explorers such as ONGC to map the geology and determine overall prospectivity of Kerala Konkan basin. RIL spokesperson did not respond to an email send by this newspaper seeking comments on the issue.

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