RIL to put on hold KG-D6 workover plan, say sources

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RIL to put on hold KG-D6 workover plan, say sources

Reliance Industries and its British partner BP have put on hold its KG-D6 workover programme on hold as the cost involved for the same would be around $100-$120 million.

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Reliance Industries and its British partner BP have put on hold its KG-D6 workover programme on hold as the cost involved for the same would be around $100-$120 million. RIL says it  already has cost recovery related issued from these oil wells and hence it can't spend more on the project, CNBC-TV18 has learnt.

RIL had earlier intimated to the Directorate General of Hydrocarbons about the declining gas output from its KG-D6 wells from 35 million cubic metres to 22 million cubic metres. Later, the energy giant said that it is conducting a study of the entire D6 block to raise output, but now, sources say that the company feels, it would be justified to have a DGH member on Board to look into the problem.

However, if RIL workover is not conducted, production ramp up is not likely by FY13.

It may be recalled that RIL-BP wanted to conduct a study after gas output from the KG-D6 block started dropping after five of 18 wells in the main D1 and D3 producing areas were shut because of water and sand entering them. The company had earlier said output may drop further and hence it wants to conduct a study to revive the wells, reducing supplies to power utilities and fertilizer plants.

A peak of 60 million cubic meters a day was reached in 2010 and output has slid since because of technical issues, according to the company.
Reliance and BP got approval to spend $1.5 billion to develop four discoveries in a cluster separate from the

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