Authorities Reject Two RIL Gas Finds

India’s Directorate General of Hydrocarbons ( DGH) has refused to recognise two significant natural gas discoveries that Reliance Industries had made in a Mahanadi basin block, because the company failed to conduct its prescribed test to ascertain the find, the Economic Times reported Tuesday. 

The oil and gas watchdog declined to recognise Dhirubhai 32 and 40 the Mahanadi basin block NEC-25 (NEC-OSN-97/2) because the company did not carry out drill stem tests (DSTs) on them, the newspaper said.

Estimates suggest that the two finds mat hold 663 billion cubic feet of gas reserves and can produce 170 million standard cubic feet per day from six wells. 

RIL had proposed an investment of $1.17 billion in developing the finds and another $23.5 million annual operative expenditure in producing 476 billion cubic feet of gas over the life of the field.