Reliance Ind will need to drill more wells to check drop in D6 output

Reliance Industries Ltd (RIL), the operator of the D6 block in the East Coast, will have to drill more wells to check the falling gas output and increase production from the fields.

Speaking to media persons after the management committee meeting, the Director-General of Hydrocarbons, Mr S.K. Srivastava, 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 Monday, 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 field development plan (FDP).

The drop in output has been because of reservoir problems. RIL's current production from the fields is 48 mscmd. The output from the East Coast fields according to the FDP should have been 69.8 mscmd.

On whether the operator will be asked to reduce cost, the DGH, said, “Cost was not discussed.”

Asked how many wells RIL will be required to add this fiscal, he said, “according to the proposal, 11 wells.” Currently, the production in the D6 block is happening from two fields – Dhirubhai-1 and Dhirubhai-3, and MA1. At present, Reliance has 18 wells hooked up to the network and is producing from 16 wells.

Reliance had in 2006 committed to investing $8.836 billion in Dhirubhai --1 and 3 fields with an estimated output of 61.88 mscmd from an estimated 22 wells by April 2011 and 80 mscmd from 31 wells by 2012.

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