EXPLORATION

Exploration success makes Indian military nervous

The East Coast of India has proven to be lucrative exploration site after Niko Resources and Reli...

The D6-D1 well encountered in excess of 100 metres of net gas pay helping the operators to increase their initial gas in-place reserves estimate for the block to 10.45 trillion cubic feet.

Currently the program has tested less than 16% of the block with a second exploration program planned for late 2003/early 2004.

Consequently many companies are interested in gaining access to the region spiking some security concerns amongst the Indian defense community. However, the government has gone against its military's wishes and refused to block companies from a number of countries from bidding for future exploration licenses.

In the upcoming licensing round the defense ministry was concerned about bids from countries such as Pakistan, China, Bangladesh and many Arab countries.

The government felt that there were enough safeguards in place and that as a signatory of the World Trade Organisation India cannot keep any other signatories out of the process.

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