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Reliance shuts 9th well at KG-D6 as output falls to all-time low

New Delhi:

Reliance Industries Ltd (RIL) has shut its ninth well at the main gas fields in the eastern offshore KG-D6 block, leading to output plummeting to an all-time low of 15.5 million standard cubic metres per day (mscmd).

RIL had on April 2 shut the well A1 on the main producing fields of Dhirubhai 1 and 3 (D1 and D3) in the Krishna-Godavari basin block KG-DWN-98/3, KG-D6, for "reservoir build-up study", according to a status report of the Directorate General of Hydrocarbons (DGH).

The company has been forced to shut the previous eight wells due to high volumes of water and sand seeping in, which affected production. It had previously shut well B6, the eighth well to be closed on D1 and D3, on January 9, and B4, the seventh well, on November 29 last year.

The latest shutting led to the output slipping from D1 and D3 to 11.70 mscmd in the week April 7, the report said. Together with 4.09 msmcd from the MA oilfield in the same block, the output totaled 15.79 mscmd in the week.

However, the production has since plummeted further to 15.50 mscmd this week, the lowest level since D1 and D3 started production in April 2009.

RIL has so far drilled 22 wells on D1 and D3 fields but has put only 18 on production so far. Half of these wells are now shut.

KG-D6 fields, which began production in April 2009, had hit a peak of 69.43 mscmd in March 2010 before water and sand ingress shut down of wells after wells.

This peak output comprised 66.35 mscmd from D1 and D3, the largest of the 18 gas discoveries on the KG-D6 block, and 3.07 mscmd from MA field, the only oil discovery on the block.

Besides the fall in output from D1 and D3, gas production from MA field, which had hit a peak of 6.78 mscmd in January 2012, too has dropped.

The report said the MA field produced about 6,235 barrels per day of oil during the week ended April 7.

Of the 15.79 mscmd of gas production from KG-D6, 13.50 mscmd was sold to urea manufacturing fertiliser plants. "No sale was made to power plants during the period," it said.

The remaining 2.29 mscmd was consumed by LPG manufacturing plants and the pipeline that transports the KG-D6 gas, it said.

RIL, the report said, has projected an output of 15.50 mscmd in April.

The company has so far made 18 gas and one oil discovery in the Krishna Godavari basin block in Bay of Bengal. While the lone oil find, MA went on stream in September 2008, largest among the gas finds, D1 and D3 were put on production in April 2009.

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