Reliance to shut oil, gas fields in KG-D6 block

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Reliance Industries plans to shut oil and gas production at its main fields in KG-D6 block in the coming months and begin complying with the government's guidelines for decommissioning facilities in the Bay of Bengal block where output has hit its lowest ever.

"Adhering to Site Restoration Guidelines issued by Government of India, RIL submitted Bank Guarantee for Decommissioning activity for existing producing fields (D1D3 and MA)," the company said in an investor presentation post announcing its fourth quarter earnings.

RIL had till date made 19 oil and gas discoveries in the Krishna Godavri basin. Of these, MA -- the only oil discovery in the block -- began production in September 2008. Dhirubhai-1 and 3 (D1 and D3) fields went onstream in April 2009.

While the company did not provide any timelines for decommissioning and stopping of production at the fields that have witnessed output drop to a fourth of peak, sources privy to the development said MA field may be shut as early as October after the current lease of a floating production storage and offloading (FPSO) unit, which processes output from the field, expires.

E-mails sent to RIL and its partner BP plc of UK, which holds 30 per cent stake, for comments remained unanswered.

The government's Site Restoration Guidelines provide for a one year notice for decommissioning of facilities.

In the presentation, RIL said "average production of gas (from KG-D6 block in January-March 2018) was 4.3 million standard cubic metres per day and oil and condensate was at 1,865 barrels per day."