India First Edition

Reliance Industries Commences Production in KG-D6 Block

Mumbai September, 2008: Reliance Industries Limited (RIL) has
commenced production of hydrocarbons in its KG-D6 block of Krishna
Godavari Basin with the production of crude oil on 17th September
2008. The field is initially producing about 5,000 barrels of crude
per day and is expected to reach its peak hydrocarbon production of
5,50,000 BOEPD over the next six to eight quarters. A first of its
kind hydrocarbons production from any deep water field in the country,
Reliance KG-D6 will account for 40% of country’s current indigenous
hydrocarbon production. It is estimated that the production from KG-D6
facility will save India an annual foreign exchange outflow of US$20
billion.
Key Highlights of Initial Production of Hydrocarbons at KG-D6:
•       The field produces sweet crude of 42? API which can be processed by
any refinery in the country.
•       From the time of its discovery, RIL has started production of oil in
KG-D6 in just over two years making it one of the fastest green-field
deep water oil development projects in the world.
•       This production has been achieved against challenges like difficult
ocean conditions, lack of adequate sub-sea data, low sea bed
temperature (5? C), severe supply chain constraints and shortage of
technical manpower. The KG-D6 Block is located in the Bay of Bengal at
a water depth of 8000 ft. and 50 Kms from the nearest coast of
Kakinada in the state of Andhra Pradesh.
•       The first vessel of its kind in Indian Water Dhirubhai-1 FPSO has
the capability to operate in water depths of greater than 1200 meters
with features that can help withstand harsh sea environment. The
dis-connectable Turret Mooring System; Insulated Manifold and short
flexible Flow Lines are some of the state-of-the-art features that can
ensure production of crude oil despite the tough weather conditions on
the East Coast of India.
•       With the production, the East Coast of India is set to emerge as a
world class hydrocarbon hub.
The KG-D6 block (KG-DWN-98/3) in Krishna Godavari basin was awarded to
RIL under NELP-I.  RIL holds 90% Participating Interest (PI) and Niko
Resources Limited holds 10% PI in the block. Reliance is the largest
exploration acreage holder in the private sector in India. Its E&P
assets consist of 54 blocks spanning eight countries. With 42
discoveries to date, Reliance has an exploration success ratio of over
60% which is significantly higher than global averages.