Reliance has sub-let its Transocean-owned ultra-deep water drillship Dhirubhai Deepwater KG-2 to Petronas a minimum of till the year-end, industry sources said.
Dhirubhai Deepwater KG-2, a high specification ultra-deep water drillship effective at operating in 12, 000 feet of water and drilling to 35, 000 ft, may drill two wells for Petronas off the coast of Brunei, beginning the following month, which may take up to four months to complete.
Following the proceed, Reliance does not have any operational offshore drilling rigs in Indian seas, sources said.
Reliance had in March last year received Dhirubhai Deepwater KG-2 from Transocean on the five-year contract at a day rate of $510, 000, sources said, adding how the Mukesh Ambani-led firm is charging the same day rate from Petronas.
A business spokesperson did not reply to an email sent for comments.
Reliance has not drilled all the wells it had committed in 2006 to win approval for investing as much as $8. 8 billion on its showpiece eastern offshore KG-D6 block.
Natural gas production in the block, at 47 million cubic metres per day, is 31% less compared to target, a phenomenon which the oil regulator, the Directorate General of Hydrocarbons (DGH), says was due to not drilling the required number of wells.
Reliance has so far drilled only 20 from the 22 wells committed by March, 2011, in the main Dhirubhai-1 and 3 gas fields from the KG-D6 block. As per its 2006 commitment, the number of producing wells is going up to 31 by the end of the current fiscal.
Sources said with no drilling rig, it cannot drill any well this fiscal.
The DGH wants Reliance to immediately take up drilling of the 11 committed wells in order to raise output, which had in March last year touched 61 mmcmd. Production has since late this past year declined amid falling pressure in the wells.
Reliance currently holds 90% curiosity about KG-D6, while the rest is with Niko Resources of Canada. It is selling a 30% stake within the block and 22 others to UK's BP Plc for over $7 million.
In 2009, Reliance had sub-let another rig, Dhirubhai Deepwater KG-1, to state-owned Oil and Gas Corp (ONGC) at a dayrate of $495, 000 to 510, 000 with regard to four years (about Rs 3, 195 crore).
ONGC was to pay each day rate of $495, 000 to Reliance for the first 180 days as well as $510, 000 from the 181st day onward.