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Vol. VIII Issue. 11
Reliance Gas' KG-D6 block output dips below 45 mmscmd

30 August 2011

August 29, 2011. Natural gas production from Reliance Industries' eastern offshore KG-D6 block has dipped below 45 million standard cubic metres per day (mmscmd). Reliance produced about 44.8 mmscmd of natural gas during the week ending August 14. The output comprised 37.7 mmscmd from Dhirubhai-1 and 3 gas fields and 7.1 mmscmd from MA oil field in the KG-DWN-98/3 or KG-D6 block. 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. During August 8 to 14, 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 13,688 barrels of crude oil per day besides the 7.1 mmscmd of associated gas. Of the total 44.8 mmscmd, about 14.6 mmscmd of gas was sold to fertiliser plants and another 26.2 mmscmd to power plants. The remaining 4 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 had 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. 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 field development plan approved in 2006, Reliance had committed to drill 31 wells by end of current fiscal. Reliance currently holds 90 per cent interest in KG-D6, while the rest is with Niko Resources of Canada. It is selling 30 per cent in the block and 22 others to UK's BP Plc for $7.2 billion. Reliance started natural gas production from KG-D6 fields from April 1, 2009. The present output is less than about 60 mmscmd production in the same period a year-ago.

      
 
 
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