Reliance's 4Q FY15 Oil, Gas Revenue Declines 10.2% to $402.8M
Oil and gas revenue generated by Reliance Industries Ltd. declined 10.2 percent to $402.08 million (INR 25.13 billion) in the fourth quarter of 2015 (4Q FY15) that ended March 31, compared to $447.68 million (INR 27.98 billion) in the previous year, the Indian firm said Friday when it released its quarterly financial results.
The fall in Reliance's total revenue in FY 2014-2015 was attributed to "a sharp fall in crude oil prices during the second half of the year. Crude oil price averaged $85.40 per barrel in FY15, a fall of 21 percent on Year-on-Year basis," the company said in the press release.
Revenue from domestic exploration and production (E&P) operations fell 13.7 percent fall in 4Q FY15 to $195.68 million (INR 12.23 billion), down from $226.72 million (INR 14.17 billion) in the corresponding period last year.
The Reliance-operated KG-D6 field off India's east coast produced 500,000 barrels of crude oil, 100,000 barrels of condensate and 36.5 billion cubic feet (Bcf) of natural gas. The production levels fell largely due to natural decline in the fields coupled with partial shutdown of MA field due to a fire in the East West pipeline, which was partially offset by incremental production from side track well MA5H.
To enhanced gas recovery in KG-D6 block, Reliance successfully completed and put to production the MA5H side track well. It also commenced drilling of substitute well B7 in D1-D3, successfully commissioned two compressors with a third compressor expected to be commissioned by early 1Q FY16 and begun post completion of appraisal wells in MJ1.
Turning to the Panna Mukta and Tapti developments, the firm said the Panna-Mukta fields produced 1.6 million barrels of crude oil and 17.5 Bcf of natural gas in 4Q FY15, a decline of 12 percent and 6 percent respectively on a Quarterly-on-Quarterly (Q-o-Q) basis. Lower production was due to natural decline and well integrity issues coupled with rig based interventions for workovers.
The Tapti fields produced 100,000 barrels of condensate and 2.8 Bcf of natural gas in 4Q FY15. Condensate production grew 3 percent, while natural gas output was 7 percent lower Q-o-Q. Gas production fell due to natural decline coupled with water loading of wells whereas the increase in condensate production was due to higher condensate to gas ratio. The field is progressing towards cessation of production.
Reliance also reported that subsequent to mobilization of rig in last quarter, the Panna Mukta joint venture (JV) has commenced workover activities and completed 5 workovers during the quarter. At the Mukta “B” Development, topside and jacket has been installed, while installation of other facilities are in advance stage of completion and drilling of 6 wells are scheduled during monsoon 2015.
On the Tapti Field Abandonment project, the Tapti JV has achieved resolution with the Indian government that the partners will continue to be responsible for abandonment obligation of Tapti B facilities and state-owned Oil and Natural Gas Corp. Ltd. (ONGC) will take over Tapti Part A facilities in accordance with Tapti Production Sharing Contract.
As for CB-10 Block, Reliance and its partners are currently in the process of preparing a development plan to submit to the Indian government by mid FY 2015-16.
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