RIL's D6 gas output falls to all-time low of 39.8 mmscmd

Reliance Industries has seen gas output from its eastern offshore KG-D6 gas fields drop to a fresh all-time low of 39.80 million standard cubic metres per day.

Natural gas production from the Dhirubhai-1 and 3 gas fields and the MA oilfield in the KG-DWN-98/3, or KG-D6, block in the Krishna-Godavari Basin of the Bay of Bengal stood at 39.80 mmscmd in the week ended December 4, according to a status report filed by the company with the Oil Ministry in New Delhi.

The output comprised 32.94 mmscmd from the D1 and D3 gas fields and 6.86 mmscmd from the MA oilfield.

The KG-D6 production is lower than 61.5 mmscmd rate achieved in March, 2010, as a drop in pressure in the wells and increased water ingress has led to a lower per-well gas output.

The report said of the 18 wells drilled, completed and put on production in the D1 and D3 fields, four wells -- A2, B1, B2 and B13 -- had to be shut or closed due to high water cut/sanding issues.

The output from KG-D6 is short of the 70.39 mmscmd-level (61.88 mmscmd from D1 and D3 and 8.5 mmscmd from the MA field) 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, with output of about 40 mmscmd.

The MA oilfield currently produces about 12,715 barrels of crude oil per day. In addition, 1,831 barrels of condensate are produced from the field every day.

The report said 14.89 mmscmd of the gas output is being sold to fertiliser plants and 22.02 mmscmd to power plants.

The remaining 2.89 mmscmd is consumed by other sectors, including those fed by the East-West pipeline that transports gas from the East Coast to consumption centres in the West.

Reliance had projected an output of 39.50 mmscmd of gas during December.

As per the status report, out of the 22 wells planned in Phase-I of D1 and D3 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.