Reliance: KG D6 Gas Project Commissioned in Record Time

On April 2, 2009, gas production commenced from KG D6 block (D1 / D3 discoveries) in a record time of six and half years, against the world average of 9 - 10 years for similar deepwater facilities. KG D6 is among the five largest deepwater gas projects globally.

During the period, natural gas production from MA field (D26) was re-injected after minimum internal utilization and there was no sale during the reporting period. Crude oil and natural gas production operations of D26 Field remained shutdown from March 22, 2009 to April 25, 2009 for hook up of the Phase - II subsea facility and connection to the FPSO. During the period, the total production from KG D6 was 1,733 MMSCM of natural gas and 99,274 tonnes of crude oil.

In a short span of 3 months, total gas production from KG D6 has ramped up to around 30 MMSCMD. This is one of the fastest ramp-ups in gas production among deepwater gas fields worldwide. Currently, natural gas from KG D6 block is being supplied to 15 fertilizer, 15 Power and 2 Steel companies. GSPA with 6 additional customers for the supply of nearly 5 MMSCMD is executed and supply is expected to commence shortly.

The total production from Panna-Mukta block was 470 MMSCM of natural gas and 451,700 tonnes of crude oil, a growth of 33% and 40% respectively as compared to the previous year. The increase in production at Panna-Mukta was due to a shutdown in PPA process platform in the corresponding period of the previous year.

The total production from Tapti block was 834 MMSCM of natural gas and 51,300 tonnes of condensate, registering a decrease of 26% and 34% respectively over the corresponding period of the previous year. The decrease in production at Tapti was due to natural reserves decline in the reservoir. To arrest the declining gas production in Tapti, 3 infill wells (2 in South Tapti and 1 in Mid Tapti) are planned to be drilled in 3Q and 4Q of FY 2009-10. After drilling these wells, the gas production is expected to be ramped up from the current level of about 9 MMSCMD to about 11 MMSCMD.

The litigation in respect of gas supply from KG D6 basin where RIL is a contractor under a Production Sharing Contract (PSC) is now pending before the Honorable Supreme Court of India and the next date of hearing is fixed on September 1, 2009.