‘RIL can raise KG-D6 gas output to 67 mmscmd’

Reliance Industries, which has seen output from its prolific KG-D6 fields fall by 15 per cent, can raise production to 67-68 million cubic meters of gas a day by next month if it can drill additional wells.

“As per the approved field development plan (FDP), gas production should rise to 67 mmscmd in April,” Mr S.K. Srivastava, Director-General of the Directorate General of Hydrocarbons, said here.

The company is currently producing 50-51 mmscmd of gas from KG-DWN-98/3 block, also known as KG-D6, off the Andhra Pradesh coast. The output is lower than the 60 mmscmd average production in the April-June quarter of 2010.

The production comprises gas output from the Dhirubhai-1 and 3 fields, known as D1 and D3, and the D-26, or MA oifield.

D1 and D3 have seen fall in output from 53-54 mmscmd in mid-2010 to 42-43 mmscmd at present. The MA oilfield in the same block is producing about 8 mmscmd of associated gas. Together, the current output from KG-D6 stands at 50-51 mmscmd.

Mr Srivastava said that 18 wells have been drilled so far and completed out of 22 development or production wells approved in Phase-I of the field development plan for the D1 and D3 fields.

Gas is being produced from 16 wells and two more wells are complete, but not put on production. Another two wells are yet to be connected to the production system.

“Reliance needs to drill two more wells by April,” Mr Srivastava said, but did not say if the company can actually complete the task in less than a month’s time.

He also did not say what action can DGH and the Government take if Reliance fails to meet its commitment.

“Once all 22 wells come on stream sometime in April, gas output (from D1 and D3) will again touch 60 mmsmcd,” he said.

Total investment in KG-D6 to date is $7.8 billion. As per the approved FDP, the D-1 and D-3 gas fields — which began gas production in April 2009 — have a field life of 13 years, with a plateau period of six years. Peak output of 80 msmcmd is projected sometime in 2012-13.

Together with gas output from the MA field in the same block, KG-D6 production is pegged to touch 88.5 mmscmd in 2012-13.

According to the production profile prepared by the DGH, production from KG-D6 will be 86-87 mmscmd between 2013 and 2016 before dipping to 81.24 mmscmd in 2017-18. Subsequently, the output will gradually taper down to less than 40 mmscmd by 2020-21.

The company is currently selling 14 mmscmd of gas to fertiliser plants, 24 mmscmd to power plants and the remaining 13 mmscmd to other sectors like sponge iron plants, LPG, city gas distribution (CGD), petrochemical plants and refineries.

It produces about 17,000 barrels of crude oil per day from the MA field.

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