ASIA

Reliance to spend US2.4bn on Dhirubhai gas field

INDIAS Reliance has announced it will invest around US$2.39 billion in order to boost production ...

Out of 12 finds, three (Dhirubhai-1, 2 and 3) have been classified as being commercial and Reliance has announced it will be developing the Dhirubhai-1 and 3 wells during the first phase of development.

According to Reliance's development plan, the company will produce 40 million standard cubic metres per day for 7.5 years from. The first gas will come onstream in August 2007 at a gas processing facility near Kakinada through a 35km, 24-inch diameter pipeline.

“The Original Gas-In-Place for Dhirubhai-1 and 3 as per [our] in-house studies is estimated to be 8.3 trillion cubic feet,” the plan stated. But the Reliance-hired international consultants D&M have put estimates closer to 6.174 trillion cubic feet.

Reliance is the operator and holds a 90% stake in the block. The balance is held by Canada’s Niko Resources.

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