Production from India’s largest gas producing fields in the Mukesh Ambani-led Reliance Industries Limited (RIL) KG-D6 block, located off the eastern coast, is seen falling at a much faster pace than expected.
The two largest gas producing fields in the KG-D6 gas block, Dhirubhai-1 and 3 (D1 and D3) have witnessed another all time low production of 28.16 million cubic meters of gas per day in the first week of March and is expected to produce at the same low levels during the month, RIL has informed the petroleum ministry in a production status note.
“In this field, so far 18 wells were drilled, completed and put on production. Out of the average gas sales during March 5, 2012 and March 11, 2012, the gas sale from D1 & D3 was about 28.16 mmscmd,” RIL told the ministry.
This is the lowest production level since RIL began output from the KG-D6 block in April 2009. Reliance has attributed this fall due to “high water cut and sanding issues (the entry of sand or water in the wells).” The company said it had to shuts 6 wells due to water and sand ingress.
The D-1 and D3 started production in April 2009 at the rate of 30 mmscmd had peaked to a rate of 61.5 mmscmd of gas in March 2010 and have been showing a continuous decline thereafter.
The KG-D6 block also has a oil and gas producing field—MA oil field, which produced 6.46 mmscmd of gas production during the first week of March. The total KG-D6 block output in the February 27 to March 4 averaged 34.62 mmscmd.
The output from KG-D6 is short of the 70.39 mmscmd-level (61.88 mmscmd from D1 and D3 and 8.5 mmscmd from the MA field) envisaged by now as per the field development plan approved in 2006.
While Reliance holds 60% interest in KG-D6, UK’s BP Plc holds 30% and Niko Resources of Canada the remaining 10%.