Companies

Falling D6 output: RIL,DGH on parallel tracks

| Updated on: May 06, 2011
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Reliance Industries Ltd (RIL) and Directorate-General of Hydrocarbons (DGH) are on parallel tracks over drilling more wells in the D6 gas fields to check drop in output.

Concerned with the drop in D6 block, the DGH has been asking the contractor to meet its field development plan (FDP) commitments, and add 11 more wells to existing 20 in the gas producing area of the block. RIL, on the other hand, has been maintaining that it was not opposed to drilling more wells, but not in the same gas pool. Drilling more wells in the same pool will not help in increasing the output.

Additional expenditure

According to sources, the company has been stating that it would like to exploit additional areas in the block. Drilling more wells in the same gas pool would only mean additional expenditure without increasing overall gas production, sources said.

The drop in output has happened due to the decline in reservoir pressure and ingress of water. Explaining the technicalities, a source said D1 and D3 are frontier fields as far as the depth of reserves and geological structure of the rocks is concerned. These reservoirs in geological terms are called stratigraphic and, therefore, unpredictable. Drilling more wells in D1 and D3 fields will only shift the gas flow from one well to another, but not really increase total production.

The operator had to drill more wells to raise the output to 61-62 mscmd by April 1, 2011, and 80 mscmd by April 1, 2012, as outlined in the FDP. Reliance had in 2006 committed to invest $8.836 billion in Dhirubhai -1 and 3 fields.

The company is, at present, produces 48 mscmd from two fields — Dhirubhai-1 and Dhirubhai-3 (40 mscmd), and MA1 (8 mscmd). At present, Reliance has 18 wells hooked up to the network and produces from 16 wells.

Technical study

RIL has been doing a lot of technical study which would help the company improve output from the fields. Recently, the company also announced a deal with British major BP, one of the best in deepwater exploration.

Meanwhile, at a recent management committee meeting of the block, the company has been asked to modify the work programme for the current fiscal. The Director-General, Directorate General of Hydrocarbons, Mr S. K. Srivastava, had then said, “From the Government perspective gas production is the main issue. In a week or two weeks' time we will be meeting again.”

The management committee, which overseas the operations of the block, at its meeting here on May 2, has asked the operator to come back with a proposal for a work programme to drill more wells including exploring new areas in the block according to the FDP.

Published on May 06, 2011

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