Reliance Industries' KG-D6 production falls to lowest level

Production from Reliance Industries' largest gas fields in the KG-D6 field is down to an all-time low of about 28 MMSCMD as RIL has been forced to close six wells due to water and sand ingress.

The Dhirubhai-1 and 3 gas fields in the eastern offshore KG-DWN-98/3 or KG-D6 block, which went into production in April 2009 at the rate of 30 MMSCMD, saw output down to 28.16 MMSCMD in the week ending 4 March, news agency PTI reported citing a status report filed by the company with the oil ministry in New Delhi.

According to the report, together with 6.46 MMSCMD of gas production from MA oil field in the same area, KG-D6 block output in the 27 February to 4 March period averaged 34.62 MMSCMD.

The KG-D6 production is lower than 61.5 MMSCMD rate achieved in March, 2010, with a drop in pressure in the wells and increased water ingress leading to a lower per-well gas output, the report said.

According to the report, of the 18 wells drilled, completed and put on production in the D1 and D3 fields, six wells had to be shut or closed because of high water cut/sanding issues.

The output from KG-D6 has been falling short of 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 stake in KG-D6, UK's BP Plc has 30 per cent and Niko Resources of Canada the remaining 10 per cent.