Non-availability of rigs halts RIL’s drilling operations

Non-availability of rigs has halted drilling operations in as many as nine deepwater blocks of Reliance Industries Ltd (RIL), awarded to it under various rounds of the New Exploration and Licensing Policy (NELP).

The nine blocks are located in major offshore basins including the Krishna Godavari, Mahanadi, Gujarat Saurashtra, Kerala-Konkan and Cauvery basins. Fearing that this may affect its exploration commitments leading to relinquishment of blocks, RIL has approached the government for a three-year exploratory holiday in these nine blocks.

In a recent letter to the petroleum ministry, RIL has said that the shortage of deepwater rigs is expected to continue until 2009-10 and non-availability of rigs was severely affecting its drilling operations. RIL is currently operating with two deepwater rigs - S Kirk Rhine and the Deepwater Frontier.

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