Gas output from RIL's eastern offshore fields drop 15%

Reliance Industries' prolific D-1 and D-3 gas fields off the east coast have seen a 15 per cent drop in production to about 45-46 million cubic meters per day because of reservoir complexities.

The Dhirubhai-1 and 3 fields, known as D1 and D3, in the Krishna Godavari basin have seen output fall from 53-54 mmscmd achieved in mid-2010 to 45-46 mmscmd, sources privy to the development said.

D1 and D3 are the largest among the 20 oil and gas finds that Reliance and its Canadian partner Niko Resources have made in the Krishna Godavari basin KG-DWN-98/3 or KG-D6 block off the Andhra coast.

"The reservoir is a complex reservoir and has not behaved as previously modelled," a source said.

Besides D1 and D3, D-26 or MA oilfield in the same block, is producing about 8 mmscmd as associated gas. Together, the output from KG-D6 currently stands at around 54 mmscmd.

Reliance has been forced to restrict production from the MA field to under 20,000 barrels per day due to high water and gas output, sources said, adding the field was yielding more water than oil and even 8 mmscmd of gas in comparison to 20,000 bpd of oil was considered quite high.

A company spokesperson did not immediately revert calls made for comments.

KG-D6 block had earlier this year hit a peak of 60 mmscmd after which the output has fallen, sources said.

Sources said Reliance will have to drill more wells to boost output to the approved peak of 80 mmscmd. Currently, 18 wells on D1 and D3 have been completed and hooked to production system but only 17 are producing.

The company is not drilling any production well at the moment as it is concentrating on completing the mandatory appraisal of other disocveries it has made in the block.

In the absence of drilling appraisal wells to delineate the discovery in a prescribed timeframe, Reliance would lose that area of the block.

Reliance is yet to complete four out of the total 22 approved wells for phase-1 of D1 and D3 field development plan.

The company is currently selling 14.5 mmscmd of gas produced from KG-D6 to fertiliser plants, 26.5 mmscmd to power plants and remaining 13 mmscmd to other sectors like sponge iron plants, LPG, city gas distribution (CGD), petrochemical plants and refineries.

Reliance had previously stated that it is carrying out further optimisation exercises at the MA oilfield in view of increasing water production levels. The field has five oil producing wells and one gas injection-cum-gas producer well.