RIL Gets a Go- Ahead to Drill a Well in D-19 field

As a part of its USD 1.529 billion plan for developing four satellite gas fields in the eastern offshore KGD6 block, the Upstream Oil Regulator DGH sanctioned the proposal of RIL to drill a well. The Directorate General of Hydrocarbons (DGH) approved the drilling of one development well KG-D6- G2 in the Dhirubhai -19 or D-19 to the Joint Secretary (Exploration).

There are 18 Gas and one oil find in the KGD6 block in the Bay of Bengal that RIL has made till date. Among them, the largest ones including Dhirubhai 1 and 3 were effectuated in April 2009 while the other one was put into effect on September 2008. The DGH had given a go ahead for four satellite gas fields including D19 this January mentioning that the OFDP (Optimized field development plan) for the predicted eight-development gas wells with a peak gas production of 10.30 million standard cubic meters per day. It has been waiting for almost three years to develop new oil fields in the KGD6 block.

Owing to the problem caused due to water and sand soaking into the wells, the output of D1 and D3 witnessed a setback this month. These satellite fields can act as an impetus to increase its output from the block. RIL had earlier presented OPDPF for four satellites (D-2, 6, 9 and 22) gas discoveries on December 19, 2009. They have mentioned the peak gas production rate to be 10.30 mmscd and the recoverable reserves are estimated to be 617 billion cubic meters for inplace reserves of 1.343 tcf. The Management Committee mentioned that DGH had approved the OFDP that was proposed. Consequently, we can foresee the initiation of this gas supply from mid-2016.

The company is presently waiting the sanctioning of its investment to USD 2.338 bn. for the production of 15mmscd of gas from D-24 in the same block.

It had earlier proposed to drill an exploration well at its own cost and expressed its desire to study about the reservoir features and working. It also opined about the need to drill exploration well in the D1 –D3 development area to study about the Mesozoic synfrint clastic reservoir that lies underneath D1-D3 Mining Lease Area.

RIL (Reliance Industries Limited), India’s largest private sector company led by Mukesh Ambani has also recently made it to the top position in the BT500 rankings, toppling TCS this year.