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The sharp drop in gas output from the Krishna-Godavari basin D6 block gas fields operated by Reliance Industries Ltd (RIL) is due to the operator having drilled lesser number of wells than what was planned, the Government has said.
The Minister for Petroleum & Natural Gas, Mr S. Jaipal Reddy, said, “The Directorate-General of Hydrocarbons has reported that the reasons for decline in gas production from D-1 and D-3 fields in the block is due to drilling of only 22 wells – 18 gas producing wells and four wells drilled but not connected or put on production – as against the 31 producing wells approved for drilling up to March 2012, as per the field development plan.”
Besides, six wells have ceased to produce after having been operational for a while.
DGH, RIL's stance
Responding to a question in Lok Sabha on reasons for the decline in output from the block, the Minister said, “The contractor (Reliance) has expressed inability to firm up appropriate drilling locations on plea of geological complexities.”
The Directorate-General of Hydrocarbons has not agreed with RIL's contention and asked the contractor to comply with the field development plan by drilling more wells in D-1 and D-3 gas fields and achieve the approved gas production profile, he said.
“The contractor has neither drilled the remaining nine producing wells nor taken any alternative action such as revisions of field development plan for approval of management committee as per the provisions of the production sharing contract,” Mr Reddy said.
Out of the 18 wells in D-1 and D-3 fields, five have ceased to produce gas because of water loading/sand ingress in the wells. One oil/gas producing well in the MA fields out of six wells has ceased to produce due to water loading.
Reliance has come in for severe criticism for its inability to check the falling output. Recently, the company had roped in British firm, BP as a partner to use its deep water expertise.
Reliance is currently producing 40 mmscmd from the gas fields. The contractor has been suggesting that the only solution available was for it to develop the satellite fields around the currently producing fields in the block and bring them to production.
So far, five gas fields have been discovered in D6 block. Of this two (D-1 and D-3) are producing.
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