KG-D6 gas output to drop to 22.60 mmcmd in 2013-14: RIL

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KG-D6 gas output to drop to 22.60 mmcmd in 2013-14: RIL

Reliance Industries has told the government that natural gas production at its flagging KG-D6xfields is likely to dip to an all-time low of about 22 million cubic meters a day by 2013-14.

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Reliance Industries has told the government that natural gas production at its flagging KG-D6 fields is likely to dip to an all-time low of about 22 million cubic meters a day by 2013-14.

RIL recently submitted sale profile for natural gas to be produced from eastern offshore KG-DWN-98/3 or KG-D6 block for 2012-13 and 2013-14 to the Directorate General of Hydrocarbons (DGH) and the oil ministry, an official said.

"The company has projected an output of 27.60 mmcmd from the block in 2012-13 as against current production of 34.5 mmcmd. RIL has projected that the output will further drop to 22.60 mmcmd in 2013-14," he said. This will be the lowest production level since RIL began production from KG-D6 block in April 2009.

Dhirubhai-1 and 3 (D1&D3) gas fields in KG-D6 block and MA oilfield in the same area produced about 30 mmcmd on debut and reached 61.5 mmcmd in March 2010 before water and sand ingress gradually brought down the output.

Today, D1&D3 are producing about 27.5 mmcmd and MA another 7 mmcmd.

Sources said RIL in its projections has stated that output from D1&D3 in 2012-13 would be 20.20 mmcmd and another 7.40 mmcmd will come from MA oilfield. In the subsequent year, production from D1&D3 would further drop to 14 mmcmd while MA oilfield is expected to produce 8.60 mmcmd.

The output from KG-D6 is short of the 70.39 mmcmd (61.88 mmcmd from D1&D3 and 8.5 mmcmd from MA field) level envisaged by now as per the field development plan approved in 2006. Production was to touch 80 mmcmd by April, 2012 after all the 31 wells envisaged in the development plan are drilled and brought to production.

RIL has so far drilled 22 wells on Dhirubhai-1 and 3, two of the 18 gas finds in the KG-D6 block that have been brought to production, but only 18 were put-on production. Of these 18, five have ceased due to water/sand ingress. MA oilfield in the same block had seen one out of the five wells cease due to the same reasons.

RIL is the operator of the 7,645-sq-km D6 block with 60% stake while London-based BP plc has 30% interest. The remaining is with Niko Resources of Canada.

Niko had last week warned that KG-D6 fields may see a further decline in output until new wells are brought to production.

The Canadian firm said its share of D6 gas production in December averaged approximately 137 million cubic feet per day mmcfd (38.79 mmcmd for the entire block).

"Declines are expected to continue until work overs are completed and/or additional wells are tied in," it said adding RIL was to do workovers or maintenance of the six closed wells which may raise the output.