Huge gas reserve struck off AP coast

Petroleum Minister Ram Naik will announce the discovery tomorrow in Mumbai.

A Reliance spokesman declined to comment saying ‘‘information will be made available at the forthcoming annual general meeting of RIL which is scheduled for October 31.’’

Though the RIL discovery in ‘‘KG-DWN-98/3 block’’ is not the country’s largest, it is expected to bridge the country’s demand once the gas starts flowing in about two years. Current registered demand with the oil ministry is about 118 million cubic metres per day against which 65 million cubic metres are available.

The block, 25 km into the deep sea zone of the Krishna-Godavari basin, was awarded to a consortium of RIL and Niko Resources under the first round of the New Exploration Licensing Policy (NELP). RIL holds 90 percent equity and Niko the remainder.

Figures disclosed by RIL show that a lion’s share of the reserves is from two of the four wells drilled at about 6,000 feet. A minor volume has been detected in the third well while the fourth has minor traces of gas.

The estimates have been analysed and checked by a US consultancy firm, said sources. RIL has told the Ministry that the first discovery in the block was made in April-May this year, within 20 months of receiving the petroleum exploration license.

But the discovery was communicated only today after the exploration project received clearance from the Environment Ministry yesterday, said sources.

Sources said the precise estimates of the reserves will be available after the field is delineated. This will be followed by development after which production will begin. ‘‘The entire process usually takes more than 24 months,’’ said a Government official.