Reliance finds huge oil reserves in block D6

Mumbai: Reliance Industries Ltd has discovered huge oil deposits in its gas-rich D6 block in the Krishna Godavari basin, Niko Resources of Canada, RIL's minority partner, said in a statement.

"The MA-2 well has encountered the thickest hydrocarbon column discovered to date in D6," the release said.

"MA-2 reached a target depth of 3,581 metres and penetrated a gross hydrocarbon column of 194 metres consisting of 170 metres of gas/condensate and 24 metres of oil in the Cretaceous section," the release added.

MA-2 is located approximately 2-km from the previous MA-1 oil discovery well.

The MA-1 well reached a total depth of 3,783 metres and hit net oil yield level of 26 metres and net gas yield level of 72 metres in June 2006.

RIL has so far reported a dozen gas discoveries in D6 with combined reserves of around 50 trillion cubic feet (TCF).

Niko Resources has 10 per cent stake in the KG-DWN-98/3 block, also known as D6. Reliance is the operator of the block with 90 per cent stake.

RIL has applied for commercialisation of the MA field and is expecting approval soon. The development plan will be fast-tracked after the approval and initial production is targeted to begin in the second quarter of 2008.