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Cokriging

Nishani,
we do not have access to your data, but I guess the problem is the size 
of the observation data set. I think the default of predict.gstat is to 
create one covariance matrix between all observation locations, which 
would be a 50,000*50,000 matrix in your case. The alternative is to do 
kriging in a local neighbourhood, with the argument nmax, eg. equal to 
20 (or maybe larger if the size of blocks is large compared to the 
distance between observations.

Just as a note, you define the projection of your data to be epsg:28992. 
This is a Dutch projection used for the meuse data in the examples of 
gstat and automap, but is most likely not the projection if you are 
using data from Australia (your email address). Try to find the correct 
projection of your data or leave it empty if you are sure that both 
observation data and the grid is in the same projection (and not lat-long).

Best wishes,
Jon

BTW, you are more likely to get quicker response to questions like this 
on the mailinglist r-sig-geo.
On 19-Mar-13 2:03, Gnai Nishani Musafer wrote: