DGH rejects RIL plea on KG-D6 reservoir complexity

Upstream oil regulator DGH has rejected Reliance Industries' plea that geological complexities are hindering drilling new wells on KG-D6 gas fields, and has asked the Mukesh Ambani firm to drill new wells to boost output, the Oil Ministry said today.

RIL has drilled only 22 wells (18 gas producing well and four wells drilled but not connected or put on production) as against the 31 producing wells approved for drilling up to March 2012 in the field development plan (FDP).

"Directorate General of Hydrocarbons (DGH) under (Oil) Ministry has reported that the reasons for lower gas production from D1&D3 fields in the block KG-DWN-98/3 (KG-D6) may be attributed to drilling of less number of development wells (producers) as compared to that envisaged" in approved FDP, Minister of State for Petroleum and Natural Gas R P N Singh told Rajya Sabha in reply to a question.

Further, gas output from D1&D3, largest among the 18 gas finds in the block that were put on production in April 2009, at less than half of the 70.38 million standard cubic meters per day was due to six out of 18 gas producing well ceasing to produce due to water loading/sand ingress in the wells.

One oil/gas producing well in MA oilfield out of 6 oil/gas producing wells had ceased due to water loading.

"The contractor (RIL) has expressed inability to firm up appropriate drilling locations on plea of geological complexities. DGH has not agreed to the contractor's contention and asked the contractor to comply with the approved FDP by drilling more number of gas producing wells in D1&D3 gas fields and achieve the FDP approved gas production profile," Singh said.

D1&D3 produced 28.93 mmscmd of gas in February and MA oilfield in the same block another 6.64 mmscmd. The two fields should, as per the approved FDP, be producing 70.38 mmscmd by now from 31 wells.

The KG-D6 output has fallen from 61.5 mmscmd achieved in March 2010 to 35.57 mmscmd in February.

Singh said the issue of falling gas production in KG-D6 block had been deliberated in various technical committee meetings held between RIL and DGH, including the field visit by DGH's technical team to ascertain the reasons for less gas production.

"The (block) Management Committee, comprising of representatives of government, DGH and contractor, has also examined the issue from time to time," he added.

"In order to increase the gas production from KG-D6 block, the contractor (RIL) has been advised to drill more gas producer (wells) in D1&D3 gas fields as well as adopt appropriate remedial measures such as well intervention in D1&D3 and MA fields to revive the sick wells," Singh said.