RIL-BP submits new plan to enhance gas production at KG-D6

New Delhi: With KG-D6 output hitting an all- time low, Reliance Industries and its British partner BP have submitted to the government a revised field development plan for enhancing gas production from MA field in the block.

RIL-BP propose to drill one gas production well on the MA oilfield in the eastern offshore or KG-D6 block besides intervention of jobs in at least two of the existing six wells on the fields, sources privy to the development said.

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MA is the only oil field made by RIL in the 7,645 square kilometre KG-D6 block. The field produces about 11,200 barrels a day. MA field makes up for about one-fifth of the 34.09 mmcmd of current gas output from KG-D6 block.

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Sources said six wells had been drilled on MA field, of which one had to be closed because of water loading and sand ingress. RIL-BP plan to do work over (intervention activity involving invasive techniques to raise output) on the closed well and at least one more well facing similar problems.

This together with a seventh well, which would only produce gas unlike the current five wells that produce both oil and gas, would help the field raise output to 8 mmcmd. MA field had begun oil production in September 2008 and gas in April 2009 and in 2010 had averaged 8 mmcmd of gas output.

Sources said the revised FDP for MA field was submitted to the Directorate General of Hydrocarbons (DGH) in February and RIL-BP have made technical presentation.

Also, RIL-BP are working on an integrated and capital efficient plan for block development, involving production from all the 18 gas discoveries in KG-D6.

They projected first gas from R-Series, the third largest gas field in KG-D6 block, by 2015 and production from satellite fields by 2016 subject to timely regulatory approvals.

RIL began production from Dhirubhai-1 and 3 (D1&D3) fields, the largest among the 18 gas and one oil field, in April 2009 but output has fallen from a peak of 54 million cubic meters per day in March 2010 to 27.64 mmcmd this month.

Together with 6.45 mmcmd of gas production from D-26 or MA oil field in the same area, block output is 34.09 mmcmd.

The plan would help in cost savings of over $1 billion due to integration and optimisation. In addition, un-incurred phase-II cost of D1&D3 field development plan would not be required to be spent, they said.

Sources said RIL-BP plan to connect R-Series and four satellite fields, for which a $1.529 billion field development plan was approved by the government in January, to the existing infrastructure used to produce gas from D1&D3 and

MA. Also, other satellite fields would be hooked up to these. R-series and four satellite fields alone have potential to add 30 mmscmd of output.

PTI