RIL Strikes Gas in KG Basin

Reliance Industries Ltd (RIL) has found gas in the first exploration well it spud in more than five years in KG-D6 block.

The MJ-1 exploration well has not yet been completed and the company will decide on testing the natural gas found once the well reaches target depth by this weekend, sources told Press Trust of India.

Sources said the resource found may be significantly more than RIL's a pre-drill best case gross prospective resource of 819 billion cubic feet of gas and 56 million barrels of liquids for the well.

RIL had drilled MJ-1 well in early March after the government permitted companies to drill exploration wells in areas where exploration period had long expired.

Dhirubhai-1 and 3 (D1&D3) gas fields, the largest among the 18 gas finds on KG-D6 block, have proved to be more difficult to produce than previously predicted.

RIL as operator of KG-D6 block has 60 per cent interest, UK's BP Plc holds 30 per cent and Niko Resources has the remaining 10 per cent.