Business Daily from THE HINDU group of publications
Wednesday, Aug 13, 2008
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Business Daily from THE HINDU group of publications Wednesday, Aug 13, 2008 ePaper | Mobile/PDA Version | Audio |
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Petroleum Corporate - Outlook
“After the vessel moves to Kakinada shores from Singapore, within a couple of weeks we expect production to commence from these wells.” 
V. Rishi Kumar Hyderabad, Aug. 12 With a FPSO (Floating, Production, Storage and Offloading) vessel set to stream into Kakinada from Singapore shortly , Reliance Industries Ltd is gearing up to extract crude from its Krishna Godavari basin wells by the second half of September. This will be the first deepwater well in the country to produce crude. The FPSO managed by Aker of Norway is being built at Jurong Shipyard, Singapore, and is being leased by RIL for a three-year period. The MA Fields in the D-6 block in the KG basin will produce about 40,000 barrels a day. The crude evacuated through pipeline grid set up will be shipped through tankers to refineries, according to RIL officials. However, the gas produced from the KG wells will be pumped back into the wells as there is no possibility to store the gas. Meanwhile, the onshore gas processing facility at Gadimoga is nearing completion. “After the FPSO moves to Kakinada shores from Singapore, within a couple of weeks we expect production to commence from these wells. Initially, it could be about 15,000 barrels a day to be gradually ramped up to 40,000 barrels a day,” the official explained. Asked about the gas production in the KG basin, the official said that most of the installations and pipeline work of 1,400 km from Kakinada to Bharuch had been completed barring small link-ups. The undersea equipment has been procured. It is likely that by the fourth quarter of this year, the gas wells will be ready for production. Our Mumbai Bureau adds: Dhirubhai-I, the floating oil production unit chartered by Reliance, has been built by converting a large tanker in Singapore . According to information reaching here from Singapore, the floating unit left Jurong yard last Wednesday and is scheduled to arrive at the eastern coast of India by Friday. The floating oil unit is on a 10-year charter from the Norwegian company Aker and the initial contract value was $750 million. Aker will also operate and maintain the FPSO under a separate five-year contract. Once the FPSO is anchored and connected to the oil wells, which is expected to take at least two weeks, oil production from a developed field can commence within a month, said an oil industry expert. Unlike normal tankers, which need dry-docking at least every two years, the FPSO is designed to operate for 10 years without dry-docking. Dhirubhai-I can process 60,000 barrels of oil and 15 million cu m of gas a day and can store 1.3 million barrels of oil. The 8.86 lakh dwt tanker –S.T.Polar – was originally built in the US. The refitting at the Singapore yard is expected to extend the 25-year-old vessel’s life by 15 years. Reliance to invest $23 m for work on Cauvery asset KG basin gas to cost 1/5th of crude oil: Mukesh Ambani ‘Reliance KG fields may go on stream by Aug’ More Stories on : Petroleum | Outlook | Reliance Industries Ltd
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