Reliance Consortium strikes oil in Yemen

A consortium comprising Reliance Industries (RIL) has made a significant oil discovery in Yemen. The discovery in Block 9 in Qarn Qaymah 2 well is learnt to be significant, and RIL is in process of evaluating the potential commercial interest. This was confirmed by RIL’s president for international business Atul Chandra.

Block 9 has an output of 10,000 barrels of oil per day (bopd), operated by Calvalley Petroleum of Canada holding a 50% stake. Hood Oil, subsidiary of the Yemen-based business group, Hayel Saeed Anam Group (HSA) owns 25% in this block and balance 25% with RIL. Now, Qarn Qaymah 2 has encountered excellent hydrocarbon indications while drilling and, depending on the test results, may be the first hydrocarbon discovery within the granite basement zone of Block 9. The basement is a large structural high and could have significant potential, Calvalley Petroleum had said in March. However more details of the said discovery were not available at present stage due to regulatory issues.

Globally, besides Block 9, RIL has acquired stake in two onshore oil blocks, 34 and 37, in Yemen where it is partnering Hood Oil. Both blocks measure 7,500 sq km each and are located along the border with Oman. RIL’s other global exploration assets comprise of two blocks each in Oman and Columbia and one each in East Timor and Australia covering an area of about 38,000 sq km.