RIL's KG-D6 gas output dips below 45 mmscmd

Reliance Industries' (RIL) eastern offshore KG-D6 oil and gas fields have seen output further dipping to 44.5 million standard cubic metres per day (mmscmd) this month.

RIL produced 44.5 mmscmd of natural gas during the week ended September 5 as against 44.8 mmscmd production last month, according to the status report filed by the company with the Oil Ministry here.

The output comprised 37.1 mmscmd from Dhirubhai-1 and 3 (D1 and D3) gas fields and 7.4 mmscmd from MA oil field in the KG-DWN-98/3 or KG-D6 block.

D1 and D3 gas fields produced 37.7 mmscmd of gas in August, while output from MA field was 7.1 mmscmd.

As per the status report, out of the 22 wells to be drilled in the Phase-I of Dhirubhai-1 and 3 field development plan, 18 wells have been drilled and completed so far. Of these, 16 wells were put on production as two wells (B2 and B13) were kept closed due to high water cut.

MA oilfield produced an average of 14,080 barrels of crude oil per day besides the 7.4 mmscmd of associated gas.

Of the total 44.5 mmscmd, about 13.8 mmscmd of gas was sold to fertiliser plants and another 24.1 mmscmd to power plants. The remaining 6.6 mmscmd was consumed by other sectors like sponge iron plants, LPG, city gas distribution networks and petrochemical/refineries.

Minister of State for Petroleum and Natural Gas RPN Singh had last month informed Parliament that output from KG-D6 was short of 70.39 mmscmd envisaged by now as per the field development plan approved in 2006.

"The contractor [Reliance] was advised by [oil regulator] DGH to expeditiously drill more development wells in D1 and D3 field as per FDP in order to enhance gas production in KG-DWN-98/3 block," he had stated.

Reliance has so far drilled only 20 out of the committed 22 wells on D1 and D3 as reservoir has not performed on expected lines.

Of the 20 wells drilled, only 18 wells are under production. Further in the FDP approved in 2006, RIL had committed to drill 31 wells by the current fiscal-end.

RIL currently holds 90% interest in KG-D6, while the rest is with Niko Resources of Canada. It is selling 30% in the block and 22 others to UK's BP Plc for $7.2 billion.

RIL started natural gas production from KG-D6 fields from April 1, 2009.

Its partner Niko had last month stated that "declines [in production] are expected to continue until work-overs are completed and/or additional wells are tied-in".

The present output is less than about 60 mmscmd production in the same period a year-ago.