A Parliamentary committee has pulled up the Oil Ministry for not taking penal action against Reliance Industries for not adhering to the approved investment plan leading to fall in output at KG-D6 fields.
The Standing Committee on Petroleum & Natural Gas in its report tabled in Parliament on Wednesday asked the ministry to strictly monitor implementation of directions issued to RIL for reversing the trend of falling gas output from the Bay of Bengal field.
RIL's KG-D6 field has seen output drop from 62-63 million standard cubic meters per day achieved in August 2010 to 23-24 mmscmd currently. Output as per the approved $8.8 billion investment plan should have been 80 mmscmd as on date.
The panel said it was "disappointed that the reply of the ministry (explaining the drop in output) does not indicate any penal action on the operator (RIL) for shortfall in achieving the field development plan (FDP) that will arrest the decline in natural gas production." The Ministry in its response that told the committee that it had asked RIL to drill and put on production more gas wells in line with FDP and take remedial measures to revive sick wells.
RIL has drilled only 22 out of the 31 wells that it had outlined in the investment plan for D1&D3, the largest of the 18 gas finds in the KG-D6 block. Of these, only 18 were put on production and even out of those put on production, six wells have shut due to high water and sand ingress.
"The Committee desire that strict monitoring be accorded to the directions already issued to the operator RIL by DGH/ministry to ensure desired outcomes and to reverse the trend of dipping natural gas production," the report added.
Drop in output from KG-D6 pulled down natural gas production from fields operated by private firms to 21.608 billion cubic meters in 2011-12 from 26.775 bcm in the previous year.
The panel said the ministry's directions to RIL include putting more gas wells on production in D1&D3 in line with FDP, remedial measures such as well intervention to revive sick wells.
Besides, optimised field development plan for four satellite gas discoveries has been approved and declaration of commerciality was underway for other gas finds.