RIL proposes to drill exploration well in D1, D3 gas fields

With natural gas output from its Krishna Godavari (KG) - D6 block dipping to all-time low, Reliance Industries has proposed to drill first exploration well in almost five years on the flagging D1 and D3 gas fields there.

Dhirubhai-1 and 3 (D1&D3) gas fields, the largest among the 18 gas finds on the KG-DWN-98/3 or KG-D6 block, have proved to be more difficult to produce than previously predicted and RIL now wants to drill a probe well on the fields to study reservoir characteristic, sources privy to the development said. The reservoir has seen sharper than expected drop in pressure and water and sand ingress in production wells, leading to drop in output.

RIL, sources say, wants to study the reservoir phenomenon and wants to drill and exploratory well. It has written to the Directorate General of Hydrocarbons proposing to drill exploration well KGD6-MJ1 in the D1-D3 development area to probe the Mesozoic synrift clastic reservoir lying below the D1-D3 (Pliocene) Mining Lease area.

D1&D3 have seen output fall from 53-54 million standard cubic meter per day achieved in March 2010 to 25.56 mscmd this month. Together with 6.01 mscmd output from MA oilfield in the same block, KG-D6 produced 31.57 mscmd during the week ending June 3.

The output from KG-D6 is short of the 70.39 mmscmd-level (61.88 mmscmd from D1 and D3 and 8.5 mmscmd from the MA field) envisaged as per the field development plan approved in 2006.

While Reliance holds 60 per cent interest in KG-D6, UK's BP Plc holds 30 per cent and Niko Resources of Canada the remaining 10 per cent.

Sources said that in its letter to DGH, RIL pointed out to the block oversight panel, called the Management Committee, resolution of December 12, 2006 that approved the USD 8.8 billion development plan for D1&D3, for seeking approval for the exploratory well.

The resolution had stipulated that consent of DGH was needed for all future exploratory wells in the D1-D3 Development Area.

So, RIL has submitted the proposal for the exploratory well to DGH along with all the required information / data as per the requisite format, they said.