RIL to drill two more wells in KG-D6 block

Reliance Industries (RIL) is set to drill two more wells in the KG-D6 block that may boost gas production from the field where output has stagnated since April at about 60 million metric standard cubic meters per day (mmscmd). 

“The government has approved RIL’s proposal to drill two more wells as part of D1 and D3 field-development plan,” an official in the Directorate General of Hydrocarbon (DGH) said. 

The directorate, a technical arm of the oil ministry, is the custodian of the country’s oil and gas assets. 

Experts in the oil ministry said that the two wells (A21 and B16) may help RIL increase gas production from the field and sustain the higher production. 

“RIL has told us that the current (gas) production from the field is unlikely to increase beyond 60 mmscmd in the near future. It is making efforts to achieve the peak production of 80 mmscmd,” an official in the ministry said. 

“We do not wish to comment (on this subject),” RIL spokesman said in an email reply. The company’s current production of around 60 mmscmd comes from 16 wells of D1 and D3 and 5 wells of D26 fields, RIL said in a press statement issued on Tuesday. The D26 field is located next to D1 and D3 field in the same KG-D6 block. 

RIL has been producing crude oil and gas from D26 (also known as MA) field since September 2008. But major gas field, D1 and D3 commenced commercial production on April 2, 2009. 

The company managed to ramp up gas production from KG-D6 to 60 mmscmd in just nine months, but output is stuck at that level. RIL is, however, hopeful of achieving the peak production of 80 mmscmd by 2012, an oil ministry official said. 

The government had awarded the KG-D6 block (KG-DWN-98/3) to a consortium of RIL and Niko in 2000, under the first round of auction of New Exploration Licensing Policy (Nelp-I). In 2002, the consortium made the largest gas discovery of the time in the block. RIL holds 90% stake in the asset, while balance 10% is held by Niko.

Source: Economic Times

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