Reliance's Oil, Gas Business Revenue Rises 27.3% in June Quarter
India's Reliance Industries Ltd.'s oil and gas exploration and production business posted a revenue of $527.54 million (INR 31.78 billion) in the first quarter of financial year 2015 (1Q FY15) that ended June 30, an increase of 27.3 percent compared to $414.33 million (INR 24.96 billion) a year ago, the company reported Saturday.
Production from the KG-D6 field off India's east coast reached 0.53 million barrels of crude oil and 0.09 million barrels of condensate in 1Q FY15, a 1 percent fall in crude oil and a growth of 48 percent for condensate. Gas production from the block was at 42 billion cubic feet (Bcf), 15 percent below the previous year.
"Fall in production is mainly on account of shut down of wells in D1-D3 field, partly offset by incremental production from new wells drilled as part of Enhanced Gas Recovery (EGR) activities during 2H FY14," Reliance said in a press release.
The company also revealed that two rigs are currently drilling in the KG-D6 block, while drilling of a second well - MJ-A2 - has been completed as part of the appraisal of the D55 discovery and the results are now being evaluated.
At the D1-D3 and MA fields in the KG-D6 block, Reliance said the side-track in MA6H well was completed and put to production from April as part of its enhanced gas recovery activities at approximately 35.31 million cubic feet per day or 1 million standard cubic meter per day. Engineering and construction activity for booster compressor are underway with target completion by early 2015. Meanwhile, concept validation, front end engineering & design (FEED) and geo-mechanical studies are completed for the R-Cluster Development, with contracting activity underway for the long lead items.
Elsewhere at the Panna-Mukta and Tapti blocks, the Panna-Mukta fields produced 2.04 million barrels of crude oil and 18.2 Bcf of natural gas in 1Q FY15, or a growth of 16 percent and 7 percent respectively. Higher production was attributed to additional volumes from “Panna-L” area and infill well drilled during 2H FY14 coupled with modification carried out in compression facilities. Tapti fields produced 0.06 million barrels of condensate and 4.51 Bcf of natural gas in FY14, 15 percent and 42 percent lower, respectively. The decline was due to the natural decline in the existing producing wells.
During the quarter, the joint venture completed 1 infill well in the Panna-G area which was put to production. At the Mukta-B field development, Reliance reported that the engineering, procurement, installation and commissioning contract has been awarded, with scheduled completion of the facilities expected before pre-monsoon 2015. Drilling of MB wells will take place during 2Q FY16. The firm added that contracts are in place for all long lead items and fabrication of structures has commenced.
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