Reliance Industries ‘s Revised KG-D6 block plan approved by the Government
Filed Under: Business | Posted: 10/04/2012 at 5:14AM
Comments | Region: India
RIL (Reliance Industries Limited) gets a go-ahead from the Government for its revised field development (RFD) plan for MA oilfield primarily to propel gas production in the KG-D6 block, the country’s largest natural gas field. RIL holds a 60% stake in this block while UK’s BP and Niko hold 30 % and 10% stake respectively.
According to the revised field development plan, it will drill one gas well and transfer two six-oil wells into gas wells in this field, as stated by Niko Resources. It also mentioned that the revised FDP for the presently productive gas fields (D1 and D3) has been submitted to the Management Committee, the block oversight panel. After analyzing the present situation, Nikon provided details about estimated production levels and expansion activities in this plan and put to light the enhanced water handling capacity, and increased booster compression in the forthcoming years (two to three years) that would be required to bolster the plunging reservoir pressure.
The current gas production at KGD6 block is 27.5 mmsmcd approximately along with an output of 5.5 mmsmcd from MA field. KGD6 was ascertained to be the most productive discovery in the 19 oil and gas fields that the company made. The field is also capable of producing natural gas other than oil production that it is known for. High amount of water and soil ingression has been acting as a barrier hindering the total output. This Revised Field Development (RFD) plan is designed to address this problem and pull the plug before the damage is done.
Niko also stated that the Management Committee for the KGD6 block comprising of each of the representatives of the joint venture collaborators including RIL, BP exploration and themselves along with two representatives from the Government mutually decided to formulate the RFD for the MA oil and gas field. They have chalked out this plan after getting the right picture of the present situation. They finally comprehended that they will need an additional well and have to convert two suspended gas wells into gas producers in order to enhance the efficiency of this reservoir.
According to sources, RIL has also decided to cut back its investment to $ 1.96 billion in comparison to $ 276 million held previously. In its original field development plan formulated for D1 and D3, it estimated the capital expenditure to be $ 8.836 billion. 60 % of the same has spent until now.