(This story was originally published in New Delhi on Dec. 12)
Reliance Industries' eastern offshore KG-D6 gas fields have seen output dipping to around 40 million standard cubic metres per day, which is the same level as 2009 when the company had started production.
Dhirubhai-1 and 3 (D1 and D3), the first two of the 18 gas discoveries in the Krishna Godavari basin KG-DWN-98/3 or KG-D6 block in the Bay of Bengal that have been put on production, and MA oilfield in the same area produced 40.35 mmscmd in the last week of November, according to the status report filed by the company with the oil ministry here.
The output in the week ending November 27 comprised 33.47 mmscmd from D1&D3 gas fields and 6.88 mmscmd from MA oil field.
The KG-D6 production is lower than 61.5 mmscmd rate achieved in March 2010 as drop in pressure in the wells and an increased water ingress lead to lower per-well gas out.
The report said of the 18 wells drilled, completed and put on production on D1&D3, four wells -- A2, B1, B2 and B13 -- had to be shut or closed due to high water cut/sanding issues.
The output from KG-D6 is short of the 70.39 mmscmd (61.88 mmcmd from D1&D3 and 8.5 mmcmd from MA field) level envisaged by now as per the field development plan approved in 2006.
While Reliance holds 60 per cent interest in KG-D6, UK's BP Plc holds 30 per cent and Niko Resources of Canada the remaining 10 per cent.
Reliance started natural gas production from the KG-D6 fields in April 1, 2009.
The MA oilfield currently produced about 12,624 barrels of crude oil per day.
The report said 14.47 mmscmd of the gas output is being sold to fertiliser plants and 22.86 mmscmd to power plants. The remaining 3.02 mmscmd is consumed by other sectors, including by the East-West pipeline that transports gas from the east coast to consumption centres in the west.
Reliance projected an output of 40 mmscmd of gas during December.
As per the status report, out of the 22 wells planned in in Phase-I of D1 and D3 field development, 18 wells have been drilled and completed so far. Of these, 14 wells were put on production, while four wells were kept closed due to high water cut and sanding issues.
Copyright 2011 The Press Trust of India
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