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Reliance Cambay block – Wait for commercial viablity

November 11, 2009

Reliance Industries (RIL) announced on Nov 10 its first oil discovery in onshore exploration block CB-ONN-2003/1, where it holds 100% participating interest. The discovery, named Dhirubhai-43, was made at a depth of 1,451 meters in the fifth well drilled in this block. RIL is still ascertaining commerciality of the discovery with the Indian oil regulator.

Although the gross reservoir thickness of 15 meters of Miocene sand, giving test flow of 500 b/d, does not prima facie look outstanding, in our view, we note that this is the first oil discovery reported in the block and further data gathering and future success may open up more potential for reserve accretion. Moreover, other E&P operators like GSPC, ONGC have discovered commercial oil reserves in onshore blocks in the Cambay basin in the past.

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