Media reports suggest that the Directorate General of Hydrocarbons (DGH) asked the union oil ministry to
convene a meeting of the Management Committee (MC) to review the Declaration of Commerciality (DoC) for D-35 block.
The block, which is also named CY-DWN-2001/2 block, was discovered by Reliance Industries (RIL) in 2007 and subsequently the firm submitted a DoC for it.
However, the DGH, which is the technical arm of the oil ministry did not clear the DoC at that time as it found that the find was not viable at $4.2 per million British thermal unit gas price.
Now, media reports suggest that the directorate wants the oil ministry to convene the MC meeting to review the DoC. The technical arm feels that the block may have 622.3 bcf of inplace resources, of which 378.56 bcf can be produced.
If the MC and the oil ministry approves the DoC, RIL may invest $ 1.452 billion for developing the block, which is in the Cauvery basin off the Tamil Nadu coast several.
RIL secured the block in the third round of New Exploration Licensing Policy (NELP). DGH had in its analysis stated that the gas discovery was viable at no less than $6 per mmBtu.
RIL proposes to produce 150 million standard cubic feet per day of gas for 10 years from five development wells on the find. First gas is envisaged in four years.
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