DGH pushes RIL for more as gas output shows sag | india | Hindustan Times
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DGH pushes RIL for more as gas output shows sag

Upstream energy regulator directorate general of Hydrocarbons has sought the intervention of the petroleum ministry to ensure that RIL delivers gas in line with existing production targets from the KG-D6. Anupama Airy reports. Worrying regulator

india Updated: Apr 21, 2011 02:22 IST
Anupama Airy

Upstream energy regulator directorate general of Hydrocarbons has sought the intervention of the petroleum ministry to ensure that Reliance Industries Ltd (RIL) delivers gas in line with existing production targets from the country's largest gas field, the KG-D6 in Andhra Pradesh.

Mukesh Ambani's RIL recently informed the regulator that gas production from its KG-D6 block for 2011-12 and 2012-13 will be 43 and 38 mmscmd respectively, against production targets of 61.88 mmscmd and 80 mmscmd respectively, which were agreed between RIL, DGH and the petroleum ministry.

The DGH in its April 13 letter to the ministry said it has asked RIL to "recast the production profile" of its gas block to ensure existing targets are met.

"The production profile estimated by the operator (RIL) has been reviewed and it is observed that the production from its D1 and D3 gas fields (in KG-D6) for 2011-12 and 2012-13 is far less than approved production profile," the DGH said in its letter.

DGH fears that the output may fall further during 2012-13.

"We have asked Reliance to immediately drill two new wells in the first quarter of 2011-12 and nine more wells in the remaining period of the current financial year as also revising the numbers for 2012-13," a senior DGH official told HT.

A Reliance spokesperson refused to comment.

The DGH said in its letter that RIL has not been able to provide satisfactory reply on non-compliance of work commitments in terms of drilling, completing and putting on production of wells, which has resulted in its failure to meet approved gas production targets.

So far, only 18 wells have been put on stream and average production is in the range of 41 mmscmd. Another two wells have been drilled, but not yet been completed or connected, DGH noted in its letter.