RIL closes 4 wells in KG-D6 gas field

RIL closes 4 wells in KG-D6 gas field

The Dhirubhai-1 and 3 (D1&D3) gas fields and the MA oilfield in the KG-DWN-98/3, or KG-D6, block in the Bay of Bengal produced 41.06 mmcmd of gas in the week ending November 13, according to a production report filed by the operator (Reliance) with the
Oil Ministry here.

Of the 18 wells drilled, completed and put on production on D1&D3, four wells -- A2, B1, B2 and B13 -- had to be shut or closed due to high water cut/sanding issues, the company told the ministry.

Reliance had outperformed the targets when it crossed 54 mmcmd from D1&D3 gas fields in March, before fall in pressure, water ingress and thinner-than-expected reservoirs resulted in a drop in production. Together with 7-8 mmcmd of gas from MA oilfield in the same licence area, total KG-D6 output was 61.5 mmscmd in March 2010 as against the targeted 40 mmcmd in 2009-10 fiscal.

The production, as per the government-approved field development plan, was to rise to 61.88 mmcmd from D1&D3 this year but it has fallen to 34.11 mmcmd in the week ending November 13. MA oilfield is producing 6.92 mmcmd, the report said.

The MA oilfield currently produced 12,636 barrels of crude oil per day.

The report said 13.31 mmcmd of the gas output is being sold to fertiliser plants and 24.44 mmcmd to power plants. The remaining 3.31 mmcmd is consumed by other sectors, including by the East-West pipeline that transports gas from the east coast to consumption centres in the west.

Reliance projected an output of 40.80 mmcmd of gas during the rest of November.
As per the status report, out of the 22 wells planned in in Phase-I of D-1 and D- field development, 18 wells have been drilled and completed so far. Of these, 14 wells were put on production, while four wells were kept closed due to high water cut and sanding issues.

Minister of State for Petroleum and Natural Gas R P N Singh had in August informed Parliament that output from KG-D6 was 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.

While Reliance holds 60 per cent interest in KG-D6, UK's BP Plc holds 30 per cent and Niko Resources of Canada the remaining 10 per cent.

Reliance started natural gas production from the KG-D6 fields in April 1, 2009.