RIL gets DGH nod to start drilling in D-19 field

The directorate general of hydrocarbons (DGH) has approved Reliance Industries' plan to start drilling in the D-19 field in the Krishna-Godaveri offshore block in the east coast of India, as part of its strategy to develop four satellite gas fields to bolster output at the flagging KG-D6 gas block.

Reliance Industries Ltd, which is the operator of the KG offshore blocks, is planning to drill a well in the D-19 field in the block as part of a $1.529 billion capex plan to develop four satellite gas fields around KG-D6 block.

DGH, the upstream regulator for oil and gas projects, had, earlier this year, approved an optimised field development plan (OFDP) for the D-19 gas field along with the other three satellite fields RIL planned to develop.

DGH had, on 2 November, written to the joint secretary (exploration) in the ministry of petroleum and natural gas that one development well KG-D6-G2 in the Dhirubhai-19 or D-19 field may be allowed.

"Approved OFDP envisaged eight development gas wells with a peak gas production level of 10.30 million standard cubic meters per day," the DGH wrote in its letter.

However, gas output at RIL's D1 and D3 blocks has seen a drop from a peak 55 mmscmd output in August 2010, to 20.06 mmscmd this month, following seepage of sand and water into the wells.