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August 4, 2011. Reliance Industries' prized KG-D6 gas fields have seen output drop over 27 per cent to around 47 million standard cubic meters per day in June. The government had in 2006 approved an investment of 8.8 billion in two phases in developing Dhirubhai-1 and 3 gas fields in the KG-D6 block (Phase-I: $5.2 billion and Phase-II $3.6 billion). Dhirubhai-1 and 3 (D1 and D3) fields were estimated to have a life of 13 years with peak natural gas production envisaged at 80 mmscmd. This production is made up of output from D1 and D3 and MA oil field in the block. MA oil field produces about 8 mmscmd of gas while the rest comes from D1 and D3. MA oil field in the same block produced an average of 15,511 barrels of oil per day in the first quarter of current fiscal as against the production profile of 20,890 bpd as per approved FDP. 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. Pressure in the wells has dropped sharply and there is an increased water ingress, resulting in lower per-well gas output. Of the 20 wells drilled, only 18 are connected to the production facility. Of these 18, only 16 are in production currently. Further in the FDP approved in 2006, Reliance had committed to drill 31 wells by end of current fiscal.
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