RIL’s MJ discovery develops off India

India’s Reliance Industries’ (RIL) MJ Discovery is estimated to have 1.4 Tcf of unrisked contingent resources offshore India, according to partner Niko Resources.

MJ Discovery map. From Niko.

The joint venture recently received an independent resources evaluation from petroleum engineering firm Deloitte LLP on the MJ Discovery, in the D6 Block.

D6 is located in the Krishna-Godavari basin and spans over 1.88 million acres. Dhirubhai 1 and 3 MA gas and oil fields are also located in the block.

According to the report, Deloitte evaluated the contingent resources based on available information, including the drilling, testing and coring results of the MJ‐1 discovery well and the MJ‐A1, MJ‐A2, and MJ‐A3 appraisal wells.

“The discovery and successful appraisal of MJ adds a new and exciting chapter to the D6 Block,” says William T. Hornaday, Niko chief operating officer. “Going forward, the contractor group in the block will be working on plans to develop MJ, which may lead to potentially significant additions to reserves and production levels in the coming years.”

The drilling of MJ‐1, located in the central (north) fault block, was completed in May 2013 at 1024m water depth, to a total depth of 4509m. Drilling was done to explore the prospectivity of a Mesozoic Synrift Clastic reservoir lying over 2000m below the already producing reservoirs in the Dhirubhai 1 and 3 gas fields.

Niko says that the formation evaluation indicates a gross gas and condensate column in the well of about 155m in the Mesozoic reservoirs. In a drill stem test, the well flowed 30.6 MMcf/d of natural gas and 2121 b/d of liquids though a 36/64in choke, with a flowing bottom hole pressure of 8461 psi suggesting good flow potential. The well flow rate during the test was limited by the rig and well test equipment configuration.  

The appraisal program of three appraisal wells provided additional information on understanding the reservoir.

The first appraisal well, MJ‐A1, in what is now designated as the northern fault block, had encouraging results, Niko said.  

MJ-A2, the second appraisal well located in the eastern segment on the MJ discover area, encountered no hydrocarbon bearing zone.

The third appraisal well, MJ‐A3 located in the central (south) fault block, encountered hydrocarbons at the zone of interest, with the zone thinner than expected.

Deloitte’s report indicates that the best case estimate of gross unrisked contingent resources of 1.4 trillion cubic feet of equivalent (Tcfe) relates to the central (north), northern and central (south) fault blocks that were drilled by the MJ‐1, MJ‐A1, and MJ‐A3 wells, based on an estimated areal extent of approximately 24sq km, approximately twice the areal extent of the analogous MA field that is currently producing.  

RIL is the operator of the D6 Block with 90% interest. Niko holds the remaining 10%.

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